Better client communication about the value of advice is a must for financial advisers making the transition to a fee-for-service remuneration model, an industry principal has said.
“We’ve acknowledged that if there’s anything that advisers have done wrong over the last few years it’s their failure to communicate the value they bring to the relationship,” Leading Minds Academy co-principal Brian Boggs has said.
“As a result of the Joint Parliamentary Committee we don’t know what’s going to happen with adviser remuneration but we do know that there is a lot of concern around how advisers get paid.”
In a bid to help ready advisers for the change, the online education academy has developed a 16 part video training program.
“Advisers can go online and learn the soft skills of communicating so they can make the transition between commission-based remuneration and fee-based remuneration,” Boggs said.
While the industry requires more than a 16 part program, the program makes for a good start, he said.
“We’ve got to have a starting point. Everybody in the debate that has been going on is saying people have to change, they are telling them why they have to change, but no one is showing them how,” he said.
“Change is inevitable and there needs to be a period of time for a transition.”
The training program, The Price of Advice, was launched earlier this month.
