If a career in financial services doesn’t work out for Paul Barrett then he could seemingly make a decent living as a chippie: he’s hit the nail on the head with his recent column about the affordability of financial advice.
Barrett argues that life, and finance, are complex and therefore financial advice is complex and has a price tag to reflect this. Rather than looking for ways to reduce the price of advice, the industry should revel in the complexity of the issues it solves for its clients and be unashamed about the cost of its services.
Of course, cost is half the equation. The other half is value. If consumers perceive value in something they will pay for it. But if they can’t perceive value, they’ll focus on the only number they can, which is the price.
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Familiarity breeds contempt or, at least as far as financial advisers are concerned, familiarity breeds dissatisfaction. The longer an adviser has been authorised by a licensee, the less satisfied the adviser is likely to be with that licensee, across a range of measures.
At first glance this might seem a counter-intuitive result. If an adviser is dissatisfied with a licensee the more likely you might think they’d be to switch to a new one. But it seems that advisers are happy to stick with a relationship that’s leaving them increasingly dissatisfied and then bitch about it in research like CoreData’s 2021 Licensee Research.