During a discussion about goals-based advice at a recent Advice Intelligence roundtable, FPA head of policy and government relations Ben Marshan said:
"The value of a financial adviser is helping the client define and achieve goals, helping them to trade-off between different goals and keeping them accountable for them. It's not the Statement of Advice or the products; it's the mentoring and the relationship. That's what I think is missing from a lot of advice," he said.
The FPA’s head of policy believes advisers are looking at the Statement of Advice (SoA) the wrong way, and they need to rethink the way they approach them.
Speaking on a panel hosted by Advice Intelligence at the Hotel CBD on Thursday, Ben Marshan said one of the complaints he hears a lot from members is that no other profession has to do an SoA.
"Our aim is to transform financial advice into a language a consumer speaks and a dynamic interactive experience they feel they co-created."
"In times of public scrutiny and regulatory change, it’s important for the financial planning industry to reflect on how we can build two-way trust with consumers by delivering advice in a smarter and more appealing way,” Henderson said.
Today’s Statements of Advice (SoA) aren’t a powerful or appealing way to deliver information – after all, they are produced in a language and format that most people simply don't understand. Far from helping educate clients, this 'foreign language' only seeks to alienate and confuse them.
Regtech, artificial intelligence, on-demand online education services, and pre-emptive risk detection are the ways of the future for the financial advice industry to tackle compliance and higher education requirements, Malavika Santhebennur found.
Goals based advice can help women learn the basics of financial literacy, and specifically cash-flow, would help address the gender wealth gap and empower women to be financially independent.