The Adviser Ratings Landscape Report, Australia's most detailed overview of the wealth management industry, indicates that the advice profession is finally undergoing renewal following years of challenges.
For the first time in five years, the profession’s numbers are stabilising, with just over 15,800 advisers now working in Australia. For advisers and practices who have stayed the course, many have reported increases in revenue and profitability in the past 12 months.
The in-depth research also illustrates the perception of advice - and its importance in the current climate - is changing, with almost one-in-five Australians willing to pay up to $5000 to see an adviser.
Key findings:
• Almost one-in-five Australians would pay between $2500 and $5000 for financial advice, compared to four per cent last year.
• Supply challenges mean fewer than 10 per cent of Australians are now receiving retail financial advice.
• The median cost of advice has risen a further 5 per cent to $3,710.
• Sadly, 80 per cent of Australians who want advice couldn’t afford to pay what the average adviser charges.
• Adviser Ratings platform leads have hit an all-time high, indicating the growing demand for advice.
Adviser Ratings CEO, Angus Woods, said it’s clear the industry has turned a corner.
“Advisers who have invested in their business and profession are starting to reap the rewards, with high client demand, profitability and a greater menu of tools to help them succeed,” Mr Woods said.
“Australians are also recognising advisers play a critical role in planning for the future and managing shorter term financial pressures, particularly at a time of interest rate rises, market gyrations and inflation.”
“As Australians face extreme cost of living pressure, the demand for professional advice is set to grow even further,” Mr Woods said. “Advisers are responding by adding to their client load and making material changes to their businesses to improve efficiency.”
The research also examines advisers’ investment and technology sentiment.
“There are clear winners and losers when it comes to platforms and technology, with advisers too time-poor to deal with inferior service.”
The Landscape Report also provides valuable insights into advisers’ intentions for the next 12 months, with succession planning and process efficiencies among the top areas of concern for the coming year.
Also included in the 2023 Landscape Report, and soon-to-be-released Life Insurance Study 2023, are the winners of the 2023 Adviser Ratings Awards, recognising excellence in their respective categories. Those award winners are:
Platforms
• Best Advice Platform – HUB24
• Best Client Experience – HUB24
• Best Adviser Experience – HUB24
• Best for New Advisers – HUB24
• Best Functionality –HUB24
• Best Adviser Support – HUB24
• Overall Investment Options - HUB24
Software
• Best Advice CRM – Worksorted
• Best Advice Software – Product Rex
Research House
• Best Research House – Lonsec
• Competence of Personnel – Lonsec
• Quality of Research – Lonsec
• Breadth of Research – Lonsec
• Timeliness of Research – Lonsec
• Best Adviser Support – Lonsec
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