The biggest threat to financial advice is commoditisation as product manufacturers look to directly deal with clients, according to RetireInvest national manger of franchise distribution Peter Ornsby.
"Advisers must ensure that they continue to offer high-quality personal advice and not hide behind platforms and technology, otherwise they risk commoditising advice," Ornsby said at the Australian Custodial Services Association conference in Sydney yesterday.
Ornsby, who has worked in the travel business, said the travel sector faced a similar challenge.
Once advice began to be commoditised, product manufacturers [the airlines] cut out the middle group [the travel agents] and dealt directly with the clients, according to Ornsby.
"Similarly, clients can cut out the advice chain and deal directly with product manufacturers if they are not getting the value of advice they expect," he said.
Adviser perceptions also differ to those of their clients, according to Perennial head of retail funds management Brian Thomas.
The Storm collapse and the ongoing market crisis has affected the level of confidence in advice, he said.
"We have found that 30 per cent of high net worth clients now value their financial planner less than they did six months ago," Thomas said.
