Investment in training and support as well as improving communication skills should be front of mind for financial planning companies in light of predictions of a turbulent year ahead, industry participants have said.
On Wednesday, the World Bank's latest Global Economic Prospects (GEP) 2012 said the global economy remained weighed down by the 2008 fiinancial crisis and predicted it would grow just 2.5 per cent this year.
Many have suggested the market downturns could spur a second global financial crisis (GFC) which could hinder Australia.
In light of this, financial planners need to maintain as much contact with clients as possible, and review portfolios and cash income needs during volatile markets, participants said.
"We've put a lot of importance on making sure that we are communicating. I don't think you can overcommunicate at the moment," RetireInvest Toowoomba proprietor and financial adviser Jeff English said.
English said it is also important to make sure clients have a well-researched portfolio.
"That is probably the first thing, making sure they do have a well-researched portfolio and making sure their investments are of good quality and that even if they do go down, over the longer term they are still solid investments," he said.
Clients must have a greater understanding of what is going on in the market and that the potential exists for a downturn.
A commitment to providing advisers with tools and training to support their clients in times of uncertainty is also key, Financial Wisdom general manager Mark Ballantyne said.
"We've definitely put in a lot more effort in the last year in making sure we have either the support, the tools or the training for our advisers," Ballantyne said.
"A financial adviser has to deal with markets going up and down on a daily basis and they've got to deal with the emotions of their clients and how their clients may react on a daily basis, so for the past couple of years we've invested heavily in making sure our support, tools and training help our advisers in that situation."
National Australia Bank wealth manager MLC noted its Market Volatility Toolkit has been an important resource for advisers in recent months.
"MLC is committed to supporting advisers and continues to provide a constant stream of information, market insights and tools to aid in client engagement," an MLC spokesperson said.
IOOF Advice head of research Peter Hilton said he does not anticipate another GFC in Australia.
However he said a slowdown in more volatile markets, such as Europe, will make growth in Australia a challenge.
"Our positioning is very much orientated around income-focused assets within portfolios," Hilton said.
"Income is the new capital gain, and people will be more and more focused on income going forward if growth is difficult to achieve."
