“The way in which financial advice is delivered has to change. The industry is facing challenges from regulation and technology that will make old models of advice obsolete in the very near future”, Patrick Cairns stated in a recent Moneyweb article.
According to Cairns, the reality of the future remuneration of financial advisors in line with the Retail Distribution Review (RDR) proposals, the accessibility of internet-based robo–advice, together with demand from clients for more meaningful financial advice, will define the future of the profession.
“The reality is that today, more than ever before, sitting on a winning recipe does not guarantee success into the future, simply because what our clients want and what we can do, and should do, is evolving at such a rapid pace,” Henry van Deventer, chief officer for advice model design at Liberty Group, points out. “It has become so important for us to appreciate that what has brought us this far is not necessarily guaranteed to take us forward.”
This means advisors have to engage in a large dose of self-reflection.
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