If I were running an advice practice today

By: Brett Mennie, Head of Managed Portfolios

If I were running an advice practice today, I would be looking at:

1. Client engagement and the question of the value of advice.
2. Removing back-office processes not related to customer engagement and outsourcing them.
3. Digitisation of my practice.

According to HUB24’s Director of Strategy Development, Jason Entwistle, while all these topics are related, the question of the value of advice sits at the heart of the industry’s challenge.

“At the end of the Royal Commission, Commissioner Hayne said he was not convinced that strategic advice was valued. This was significant.”

Speaking in a HUB24 Webinar session I chaired titled “Masterclass with HUB24’s Jason Entwistle on the future of Technology, Platforms and Managed Portfolios”, Entwistle drew on his 30-year history in the platform industry to offer some fresh insights on the platform space.

While he said the Royal Commission had been the trigger for a lot of change, it is not the only one and the next five years will see the transformation of advice.

Further, although the challenges may not have changed, the timeframe in which to adapt and make changes has. Delivering a service that clients value and can be measured, remains very important.

“We aren’t great at explaining that value and probably very poor at measuring it,” said Entwistle.

Innovations like machine learning and artificial intelligence may help in meeting this challenge, but can they measure value beyond investment performance? The benefits of these innovations are scaling up practices so they can provide more advice.

There will also be further innovation in systems designed to assist advisers with compliance, as regulators look for 24/7 surveillance.

“The days of random file audits post the issue of advice documents are gone. The advice burden is not going to go backwards.”

Did you miss our Webinar?

In this webinar, Jason Entwistle offers insights on the important role technology plays in an increasingly competitive space where financial advisers are looking for continued practice efficiencies and service delivery excellence.

Watch the webinar here.

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