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iress.com
Looking overseas
to fulfil the advice
gap conundrum
Mark Loosmore - Executive General Manager Wealth (UK)
Decemb...
Introduction
1 2 3 4
FOFA
The Australian RDR
Impact on
the Australian
advice market
The role of
technology
Learning
points
We had the RDR 1st January 2013
Transparency & clarity
Independence
Proposition
Pricing
Professionalism
Qualifications
CPD...
OK, but with one exception
Transparency & clarity
Getting there
Professionalism
Better than expected
Access
Not good
Gone ...
Of course, there are differences
‘Super’ vs Auto-enrolment
• Longer track-record of
auto-contribution
• Higher contributio...
Of course, there are differences
More joined up processing
• More point-to-point integration
fewer comparison portals
More...
So, in Australia they had FOFA
Transparency & clarity
Best Interests
SOA
2 Year ‘Opt-in’
Professionalism
Didn’t tackle
Acc...
OK, with major exceptions!
Transparency & clarity
Went too far?
Professionalism
Didn’t tackle
Access
Not resolved but givi...
Where are they post FoFA & RDR?
Australia United Kingdom
Scaled advice (simplified process) Self service
Integrated techno...
What can we learn?
What can we learn?
And, technology can make it streamlined
Regulation can improve an existing advice market
But, regulatio...
What can we learn?
People are the same the world over
(human behaviour is common)
We need to find ways to “engage” the mas...
Conclusions
Conclusions
Two countries, very different in many ways,
but the advice markets are running fairly parallel
Australia sligh...
Thank you
iress.com
Email: mark.loosmore@iress.co.uk
LinkedIn: https://uk.linkedin.com/pub/mark-loosmore/5/56a/461
Twitter...
Looking overseas to fulfill the advice gap conundrum.pptx
Looking overseas to fulfill the advice gap conundrum.pptx
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Looking overseas to fulfill the advice gap conundrum.pptx

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Following RDR and the Australian FoFA, what can we learn when it comes to serving the mass markets with financial advice?

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Looking overseas to fulfill the advice gap conundrum.pptx

  1. 1. iress.com Looking overseas to fulfil the advice gap conundrum Mark Loosmore - Executive General Manager Wealth (UK) December 2015
  2. 2. Introduction 1 2 3 4 FOFA The Australian RDR Impact on the Australian advice market The role of technology Learning points
  3. 3. We had the RDR 1st January 2013 Transparency & clarity Independence Proposition Pricing Professionalism Qualifications CPD Access Simplified advice Removal of bias Commission ban Sunset clause Overriding Goal A properly functioning market for financial advice
  4. 4. OK, but with one exception Transparency & clarity Getting there Professionalism Better than expected Access Not good Gone backwards? Removal of bias Good progress Overriding Goal A properly functioning market for financial advice
  5. 5. 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 64M23M PopulationPopulation
  6. 6. Of course, there are differences More joined up processing • More point-to-point integration fewer comparison portals More politically charged • Australian Labour government 64M23M PopulationPopulation
  7. 7. So, in Australia they had FOFA Transparency & clarity 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 Overriding Goal A properly functioning market for financial advice
  8. 8. OK, with major exceptions! Transparency & clarity Went too far? Professionalism Didn’t tackle Access Not resolved but giving Scaled advice a go! Removal of bias Good progress Overriding Goal A properly functioning market for financial advice
  9. 9. 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
  10. 10. What can we learn?
  11. 11. What can we learn? And, technology can make it streamlined Regulation can improve an existing advice market But, regulation can’t create demand
  12. 12. 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 technology to facilitate that engagement Unified platforms can deliver consistent client experiences and efficiencies
  13. 13. Conclusions
  14. 14. Conclusions Two countries, very different in many ways, but the advice markets are running fairly parallel Australia slightly ahead because of the money invested in Superannuation Common need to increase access being driven though technology routes… but in harmony with face to face
  15. 15. Thank you iress.com Email: mark.loosmore@iress.co.uk LinkedIn: https://uk.linkedin.com/pub/mark-loosmore/5/56a/461 Twitter: @mloosemore Mark Loosmore

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