The CountPlus whitepaper, based on CoreData research, said a core predictor of future success in the financial advice arena is the rate by which professional practitioners – accountants and financial advisers – can merge within a rapidly forming, entirely new space that is defined by alignment with true professionalism and quality advice outcomes.
CountPlus chief executive Matthew Rowe said that as financial advice evolves into a profession, the value chain is shifting.
“Large institutions are exiting their financial advice interests, leaving more space for converged advice and accounting firms to become dominant,” he said.
“Their independence will put them in an increasingly powerful position.”
Despite revelations of poor conduct unearthed by the Hayne royal commission, the whitepaper also revealed that most advised Australians believe they receive good value for fees paid to their financial advisers.
The research found more than two-thirds of people “strongly agree” or “agree” that they receive good value from their financial adviser, while only 8.2 per cent of people “strongly disagree” or “disagree” that they receive good value.
However, Mr Rowe points to challenges ahead for advice firms including a mix of community, economic and regulatory pressures.
“These elements provide a ‘perfect storm’ scenario that, together with the uncertainty of federal politics in an election year, creates an environment for rapid change,” he said.
“Businesses that emerge from the changing landscape will be better-placed than ever before to thrive in a new world of professionalism underpinned by higher educational, professional and ethical standards and stricter regulation.”
Mr Rowe said the natural home for such advice firms is defined not only by a culture of quality outcomes in the best interest of the client, but which promotes the value of a professional network deriving ‘purposeful’ economic benefit from systematic business and professional synergies.
“In other words, the natural home for this new advice paradigm to flourish is within the licensee that is purpose-designed to prioritise and sustain quality advice,” he said.
“Such organisations would already have separated product from advice, have established the required standards through investment in the best technological, business and regulatory processes, and which encourage strong values and standards to effectively shun poor behaviours and reject sales-based product models.”
Whitepapers aside, when does CountPlus’ “Most Favoured Nation” (MFN) status run out with Count, and what happens then?
(Especially as CBA’s plans for Count and WM in general have taken so many turns in the last 12-18 months it’s enough to make one dizzy!)
Kaiser Rowe,
Given CountPlus are very much institutionally owned and aligned, it is strange that you are effectively saying the advice practices belonging to CUP and Count are doomed. Your posturing is laughable. Your major shareholder is a bank, your major shareholder restricts its APL based on its own interests not those of its clients – get a grip.
The only place quality advisers will be migrating to is to accounting firms where there is so much less red tape compliance and box ticking and where you can actually get some client work done that will pay you for your valuable expertise and time.
Jimmy , aren’t they independent or non aligned ???
Guess what , higher education and ethical standards will do Jack Sh#t to stop greedy accountants and advisers from ripping off the public going forward .You can’t educate STUPID or Greed.
2 people I don’t believe or trust . 1/ Core Data surveys are absolutely CRAP 2/ Count and Count plus have an enviable track record …… of stuffing up things . They tend to use external companies rather than ask their members or trust their imput or do things for themselves . Ie Sue Viskovic , Kaplan , Core data and other hanger on’s that charge huge fees for common sense .
Surely Mr Rowe is not trying to paint Count-aligned firms as independent or non-aligned….is he???