According to the research, by 2026-27 twice as many consumers will be receiving advice at half the cost compared to a non-reform scenario.
ISN chief executive David Whiteley lauded the Future of Financial Reforms as a “win-win” for advisers and consumers.
The modeling estimated that by 2026 there will be 1.88 million pieces of advice provided per year, compared to 893,000 pieces under a no-reform scenario.
The reforms will also cut the price of financial advice to consumers in half, from $2,046 without the reforms to $1,163, and boost national savings by $144 billion, the report found.
The main driver of those changes will be a large increase in the take-up of scaled advice, Rice Warner stated.
Consumers would also benefit from a shift from commission-based charging to fee-for-service, which is cheaper for consumers over the long term, Rice Warner stated.
‘The reforms will also cut the price of financial advice to consumers in half, from $2,046 without the reforms to $1,163,.
hm… $2,046. In Australia???
We are chasing up rollover from Australian Super and they just stated they are in a black out period in July and will not be processing rollovers.
Wonder how ASIC would handle that response if a retail or wholesale fund said that to a Industry Funds. Or better that, we didnt send a FDS or said look we are busy doing reviews, for month of July we cant operate under new FOFA laws. Rules for some and not for others, this is pure communism at its best.
Surveys of this nature find what the sponsor wishes to see. Otherwise why publish it results?
My fees are going up not down – What planet does Rice Warner live on?
In addition I will no longer touch a client with less than $500,000. This is the new world we live in and it is not a win for anyone other than ISN and its affiliates.
My fees are going up as a result of FOFA, not down. I also do less limited advice then I used to because the base cost of looking after someone has gone up, it’s not worth it for me or the client. Good on you Whitely, you’re the champion for the good of no-one.
disclose the donation to the union movement whitely for all your members to see.
of course Whitely would say that, would you expect any different.
Wait till the market corrects or they have a insurance claim and then the whole industry becomes tarnished because of lack of advice.
Yesterday we saw damning evidence from the UK which shows the financial planning profession has been decimated over there, following similar reforms. Yet we are supposed to believe this research, paid by a group that has waged war against our profession for the last decade. Seriously, it is time for the media to grow up and ignore the rot coming out of the ISN.
You’re dreaming……I was already doing scaled advice…it was called limited advice and I’m just one of thousands doing the same thing. Anyway, history will tell whether these reforms (cough) did the right thing. My poorer clients will tell me they didn’t work of course when they get their first fixed fee which is higher than the ongoing commission they would have paid. But oh we’ll…hindisight’s a beautiful thing isn’t it.