Financial advisers and accountants need to manage expectations and communicate clearly if a referral relationship is to be a success, writes Nick Hilton.
Accountants have a unique opportunity to capitalise on the provision of financial advice under FoFA reforms. Matt Englund outlines the benefits to accountants in doing so and details the steps they can take to get into the advice space.
There are a number of reasons why financial planners should be confident about their ability to make a difference in people’s lives, according to Shadow Minister for Financial Services and Superannuation Senator Mathias Cormann.
FoFA is already polarising financial advice into two major offers, and Geoff Pritchard says that advice on which investment product to choose will never qualify as a financial strategy.
While FoFA reforms will have a significant impact upon financial advisers and the way they do business, it’s important to think about long-term sustainability of your business and value creation – for both your practice and for your clients.
There has been much debate about the value of financial advisers with FoFA. The best judge of what is good value for a client is the client themselves, and a Coalition government of the future would make numerous changes to FoFA as it currently stands.
The financial advice industry seriously needs to rethink its approach to charging for advice. Financial planners should look at success-based fees in considering what model they might adopt in a fee-for-service post-FoFA world.
The financial planning profession faces a number of challenges as a result of FoFA. However, the reforms present financial planners with a number of opportunities to run more efficient, collaborative practices with a strong focus on value.
The top issues facing Australia’s financial planning industry right are FoFA, revenue and competition. Financial planners need to get the balance right in addressing each in order to make sure their business model is viable and sustainable.
The government’s proposed Future of Financial Advice (FoFA) reforms have drawn both praise and criticism. However, with key independents yet to be convinced of FoFA’s value, it is clear that the government faces an uphill battle in getting FoFA across the line.
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