Wealth management businesses can be profitable and part of a vertically-integrated financial services offer by banks. They could present their best products as being in the best interests of their clients.
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A major publisher has discontinued a high-profile fund manager award due to short termism and the conflict of fund managers contributing to the revenues of the agencies doing the ratings.
In a response to Graham Hand’s article on why roboadvice is struggling, the case is made that conventional financial advice will increasingly confine itself to the wealthy, and the mass market needs another solution.
There’s a fundamental difference between banking and wealth management: bankers have no fiduciary obligation to their clients. It’s difficult for bankers to own fund managers and financial advice and fully accept the difference.
The Royal Commission will change financial advice, focussing more directly on conflicts of interest and client best interests. What can you flush out of your adviser immediately?
Financial advisers, especially in vertically-integrated firms, attached a product sale to the advice, confusing clients and setting off a chain reaction where regulators stepped in. The reputation of financial advice was compromised.
A good financial adviser can become a life-long guide to financial security, which makes taking the time to select one a major part of an investor’s plan. Make it a two-way conversation and learn how the adviser works.
The main benefit a financial adviser can give clients is not in stock picking or selecting an outperforming manager, but acting as a wealth coach and helping to control emotions.
Centrelink is facing a robo-debt backlash after using computers to check ATO records, replacing the usual human interaction. Likewise, roboadvice algorithms need to know more about the circumstances of clients.
Success in wealth management requires meeting client demands for performance, engagement and trust. There are key areas where established businesses are out of step with client expectations.
Roboadvice will increase the size of the advice market and bring vital tools to financial advisers, and while face-to-face advice will always have a role, some rationalisation will occur within the industry.
The wealth management businesses of major banks may be efficient uses of their capital, but it comes with scrutiny of the vertical integration model and culture risks. There’s increasing focus on whether it’s worth having.
Commissioners, Chris Jordan (ATO) and Greg Tanzer (ASIC), gave an update on compliance and regulatory issues for SMSFs at the SMSF Association National Conference in Adelaide today.
Results from our roboadvice survey are available to view. Thanks to all our respondents who contributed their opinions. It will be interesting to see which businesses emerge from the pack.