A seventh consecutive hike to the cash rate was announced by the Reserve Bank of Australia (RBA) earlier this week, aimed at curbing inflation, tipped to peak at 8 per cent by the end of the year.
According to AMP Capital chief economist, Dr Shane Oliver, this trend has dampened sentiment among “twitchy” investors, which fear the consequences of continued monetary policy tightening.
“Most of the surveys are showing that investors are very sceptical and very nervous,” he told ifa.
Given this market uncertainty, founder and director at Forte Asset Solutions, Stephen Prendeville, has said that demand for financial advice has “never been greater”.
Mr Prendeville explained that clients would increasingly seek advice on how to invest within “oscillating markets”, including equities, bonds, and share markets.
To capitalise on burgeoning demand, Prendeville said he has sought to ensure his business is “more scalable”, and capable of managing a larger set of clients.
This, he added, following a three-year period of “artificial suppression” off the back of the Royal Commission into Banking, Superannuation and Financial Services Industry, the subsequent introduction of new reforms, and COVID-19-induced headwinds.
“I think [industry] confidence is actually returning, we’re seeing organic growth happening now,” he told ifa.
“There’s a lot more optimism, and I think the optimism will actually increase after the Quality of Advice Review,”
According to Prendeville, there’s never been a better time to enter the financial advice space, given there are fewer financial planners to service the increase in demand.
“There are 10,000 Less participants [and] so the need for talents has never been greater with regards to other competitors,” he said.
Prendeville went on to encourage new entrants to shore up their systems and processes to ensure consistency of service delivery.
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