Financial advice will cost consumers half as much post-FOFA as Australians flock to scaled advice, according to Rice Warner research commissioned by the Industry Super Network (ISN).
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.
SUBSCRIBE TO THE IFA DAILY BULLETIN
- 16 Mar 2018CBA CEO pushed for FOFA extensionBy James Mitchell and Aleks Vickovich
- 16 Mar 2018CPA dealer group clashes with FASEA requirementsBy Katarina Taurian
- 16 Mar 2018NAB launches virtual assistant for superBy Staff Reporter
- 15 Mar 2018IFA-focused platforms open to new strategiesBy Staff Reporter
- 15 Mar 2018Deakin eyes advisers to fill staff demandBy Killian Plastow
- 15 Mar 2018Adviser Innovation Summit 2018 agenda announcedBy Staff Reporter
- view all