Download - Looking overseas to fulfill the advice gap conundrum.pptx

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

Introduction

1 2 3 4FOFA

The Australian RDR

Impact onthe Australian advice market

The role of technology

Learningpoints

We had the RDR 1st January 2013

Transparency & clarity

Independence Proposition

Pricing

Professionalism

QualificationsCPD

Access

Simplified advice

Removal of bias

Commission banSunset clause

Overriding GoalA properly functioning

market for financial advice

OK, but with one exception


Getting there

Professionalism

Better than expected

Access

Not good Gone backwards?

Removal of bias

Good progress



Of course, there are differences

‘Super’ vs Auto-enrolment• Longer track-record of

auto-contribution

• Higher contribution rates(AUS currently 9.5%, UK 2%)

• Bigger pots

More concentrated advice market• Bigger “Licensees” (advice firms)

• AUS has approx. 20K advisers servicing a population of 23M

• UK has approx. 28K advisers servicing a population of 64M

64M23MPopulationPopulation

Of course, there are differences

More joined up processing• More point-to-point integration

fewer comparison portals

More politically charged• Australian Labour government

64M23MPopulationPopulation

So, in Australia they had FOFA


Best Interests SOA

2 Year ‘Opt-in’

Professionalism

Didn’t tackle

Access

Scaled Advice

Removal of bias

‘Conflicted Payments’Ban

The Future of Financial Advice - 1st July 2012



OK, with major exceptions!


Went too far?

Professionalism

Didn’t tackle

Access

Not resolved but giving Scaled advice a go!

Removal of bias

Good progress



Where are they post FoFA & RDR?

Australia United Kingdom

Scaled advice (simplified process) Self service

Integrated technology Large components

Process re-engineering Functions re-engineering

Banks as the main distributer Withdrawal of banks (poised to re-enter)

Unified technology platform Channel specific platform

Vertical integration High 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 can’t 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

Conclusions

Conclusions

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 you

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Email: [email protected]: https://uk.linkedin.com/pub/mark-loosmore/5/56a/461Twitter: @mloosemore

Mark Loosmore