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Start Making Sense Ep9: What we read on New Model Adviser in 2020

In August 2019, CoreData started a new website, New Model Adviser, to showcase our research and insights on financial advice: the profession, advisers, advice practices, licensees, legislation and more.

During the course of 2020 New Model Adviser has provided its readers with insights drawn from CoreData’s research on a range of different subjects and issues, and we’ve enjoyed receiving readers’ feedback and comments. 

Here’s a look back at the 10 most popular articles that New Model Adviser has published so far in 2020.

At number 10 is New Model Adviser’s interview with Darren Whereat, who was the winner of the CoreData 2020 Industry Leadership Award. 

As IOOF’s head of advice, Whereat reflected on the nature of leadership and the challenges of integrating IOOF’s acquisition of MLC, and also on the importance of ensuring financial advice becomes more affordable and more accessible to more people. 

It doesn’t matter if it is from a self-licensed adviser, an adviser in an institutionally-owned licensee, a super fund or anywhere else, the main thing is that more people get access to good quality, professional advice.

At Number 9 is New Model Adviser’s analysis of CoreData’s second-quarter 2020 survey of consumers’ trust in financial services. 

It uncovered an interesting quirk in the numbers, which showed that one of the least trusting sections of the population is individuals who have previously received financial advice.

We posited that there might be a spot of post-decision rationalisation at play: people who’ve received advice and stopped my regret the decision, and rather than admit a mistake put the blame elsewhere. 

At Number 8 is an examination of how wealthy individuals invest differently from other investors when times are uncertain. 

We found that high net worth investors were more likely than mass-affluent investors to have taken advantage of investment market corrections to buy the dip, and top-up their portfolios.

At number 7, CoreData managing director Jason Andriessen took a detailed look at why super fund fees and returns are not the ultimate drivers of member outcomes. 

This episode of our Start Making Sense video series found retirement satisfaction was more closely correlated with having an active relationship with a financial adviser than it was with the member’s account balance.

At number 6, New Model Adviser highlighted the results of CoreData research findings suggesting that action taken by industry associations against their members carry more weight with the public than many people had previously thought.  

It found that about half of all clients of an adviser said they’d stop using the services of their adviser if a professional association took action against them

At number 5, another episode of our Start Making Sense video series examined the ongoing rise of licensee fees, and the increased scrutiny licensees are under from advisers to demonstrate value. 

The finding, which came from our landmark annual Licensee Research, which showed that overall adviser satisfaction with licensees increased in 2020 compared with 2019, but that it’s still lower, overall, than in 2018.

At number 4, we published the results of a CoreData analysis of the ASIC financial adviser register that showed not only are adviser numbers declining, but there’s a redistribution of advisers between tiers of the licensee industry. 

At the end of 2018, the top tier of the industry – licensees with more than 500 adviser son the licence – accounted for almost 40 per cent of all advisers. By October this year that figure had declined to 28 per cent. Growth has happened in the next tier down, licensees with between 100 and 500 advisers on their licence, which now account for 26 per cent of all advisers, up from 19 per cent at the end of 2018.

At number 3, New Model Adviser looked at the time and the cost of undertaking the FASEA exam. And while some of the figures reported from this research provoked incredulity, what we did find was advisers in relatively large practices – where there are more than 11 advisers in the practice – and who have between five and 10 years’ experience, appear to be finding the cost and time burden less than other advisers. We’ll be looking at this issue again in the new year.

At number 2, New Model Adviser reported on CoreData’s analysis of the ASIC financial advisers register and a finding from recent consumer research.

We found that demand for advice looks set to climb, driven in part by the impact of the COVID-19 pandemic on individuals’ and households’ finances, but the supply of advice continues to dwindle as more adviser choose to quit. This came out the same day ASIC released a consultation paper on how to make advice more accessible and affordable for more people – a question that is arguably well overdue being asked.

And so, a drum-roll please …

The most-read article on New Model Adviser in 2020 was our announcement of the winners of the 2020 CoreData Licensee of the Year Awards.

This year we withheld an award for the institutionally branded licensees, reflecting the enormous changes that have taken place in that segment of the market. We announced the overall Licensee of the Year, and Independently Owned Licensee of the Year, was GPS Wealth; and the Institutionally Affiliated Licensee of the Year was Affinia Financial Advisers. Congratulations also went to Peter Ornsby, chief executive of RI Advice, and Marcus O’Sullivan, head of Affinia Financial Advisers, as joint winners of the Licensee Leadership Award and – as previously mentioned – to Darren Whereat from IOOF for the Industry Leadership Award.

We’d like to say thank you to the thousands of financial advisers who read New Model Adviser each week for you continued support. We’ll keep showcasing CoreData’s work and insights, and if you have any feedback or comments to make on the website or its contents, or you’d like to sign up to receive New Model Adviser, please don’t hesitate to get in touch.

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