On a new episode of the ifa Show, head of local outsourcing company Virtual Business Partners, David Carney, said he believes the sector is reaching a place of consolidation after factors including regulation and education requirements has resulted in adviser numbers in Australia to drop.
It was revealed that the number of Australian advisers shrank below 19,000 late last year and it is predicted to reach 13,000 by the end of 2023.
“Wherever there’s uncertainty and complexity in the world, which we definitely have here today, there’s a need for people who want to seek advice,” Mr Carney said on the podcast.
“We’ve got large amounts of money transitioning from one generation to the next… none of that’s going away.
“And so there’s still a lot of demand for advice but with a reduction in the numbers, it just means that those that are switched on and focused have got plenty of opportunity.
“The firms that we deal with are largely all growing rapidly, looking at acquisitions, and their biggest challenge though is how do they resource and handle that growth?”
Listen to the full podcast with Mr Carney here.
There’s a real need for high quality hamburgers too, but you are competing with the power of the Golden Arches and a price of $2.75 instead of $16.00.
It’s still called a hamburger, but it doesn’t deliver the satisfaction or the outcome you expect!!!
It’s all good. We have the compare the pair adverts on TV.
The need and demand for advice is there. The willingness to pay for it is not.
Indeed, and don’t even start on pure risk advice . . . forget it!
There is a big difference between a “need” for advice, and “demand” for advice. As long as bad regulation makes professional advice too costly and complex for most consumers, that need will not translate into demand. The need for professional advice will instead be met by dodgy online products and scams. Which is exactly what Hume and her “Digital Economy” pals want.