Looking overseas to fulfill the advice gap

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Transcript of Looking overseas to fulfill the advice gap

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iress.comLooking overseasto fulfil the advice gap conundrumMark Loosmore - Executive General Manager Wealth (UK) December 2015


FOFAThe Australian RDRImpact onthe Australian advice marketThe role of technologyLearningpoints

We had the RDR 1st January 2013Transparency & clarity

Independence PropositionPricingProfessionalism


Simplified adviceRemoval of bias

Commission banSunset clause

Overriding GoalA properly functioning market for financial advice

OK, but with one exceptionTransparency & clarity

Getting thereProfessionalism

Better than expectedAccess

Not good Gone backwards?Removal of bias

Good progress

Overriding GoalA properly functioning market for financial advice

Of course, there are differencesSuper vs Auto-enrolmentLonger track-record ofauto-contributionHigher contribution rates(AUS currently 9.5%, UK 2%)Bigger pots More concentrated advice marketBigger Licensees (advice firms)AUS has approx. 20K advisers servicing a population of 23M UK has approx. 28K advisers servicing a population of 64M64M


Of course, there are differencesMore joined up processingMore point-to-point integrationfewer comparison portalsMore politically chargedAustralian Labour government64M


So, in Australia they had FOFATransparency & clarity

Best Interests SOA2 Year Opt-inProfessionalism

Didnt tackleAccess

Scaled AdviceRemoval of bias

Conflicted PaymentsBanThe Future of Financial Advice - 1st July 2012

Overriding GoalA properly functioning market for financial advice

OK, with major exceptions!Transparency & clarity

Went too far?Professionalism

Didnt tackleAccess

Not resolved but giving Scaled advice a go!Removal of bias

Good progress

Overriding GoalA properly functioning market for financial advice

Where are they post FoFA & RDR?AustraliaUnited Kingdom

Scaled advice (simplified process)Self serviceIntegrated technologyLarge componentsProcess re-engineeringFunctions re-engineeringBanks as the main distributerWithdrawal of banks (poised to re-enter)Unified technology platformChannel specific platformVertical integrationHigh level independence

What can we learn?

What can we learn?

And, technology can make it streamlined

Regulation can improve an existing advice market

But, regulation cant create demand

What can we learn?

People are the same the world over (human behaviour is common)

We need to find ways to engage the mass-market

We need to learn how to use technologyto facilitate that engagement

Unified platforms can deliver consistent client experiences and efficiencies



Two countries, very different in many ways,but the advice markets are running fairly parallel

Australia slightly ahead because ofthe money invested in Superannuation

Common need to increase access being driven though technology routes but in harmony with face to face

Thank youiress.comEmail: mark.loosmore@iress.co.ukLinkedIn: https://uk.linkedin.com/pub/mark-loosmore/5/56a/461Twitter: @mloosemoreMark Loosmore