In a speech to the Financial Services Council’s annual summit yesterday, Mr Wade highlighted that the wave of departures from the advice sector is expected to put around $900 billion of client wealth at stake over the next five years.
“The most immediate and significant challenge for wealth management industry leaders today is finding a solution to deliver compliant and affordable advice to the general public,” Wade said.
“And we must do it while navigating this period of disruption, regulatory oversight and market upheaval. Because today’s advice, while appreciated by those who can afford it, is too expensive for most Australians.”
He noted that there is a growing need and demand to create a “life-focused” advice solution, helping consumers in key moments when they need advice most, such as investing an inheritance or redundancy, better manage their super or pay off their mortgage.
“This is a new type of counseling intended to help Australians who do not need or cannot afford face-to-face holistic counseling,” Mr Wade said.
“It’s advice that’s priced to fit, delivered in a way that suits – digitally – and that could be online, by phone, by video or by robot. »
He called for accelerated discussions with regulators, governments and other industry players, commenting: “Coupled with the complexity of our tax and pension systems and our aging population, looming digital disruption is why we must act quickly. »
Mr Wade made the call during a period of discord to recruit advisers to the bank, with a number of advisers speaking out against AMP’s buy-of-last-resort scheme and the announcement of a “transformational” wealth strategy, which would require it to select a certain number of advisors. of advisors.
Chief executive Francesco De Ferrari would not confirm how many advisers would be made redundant, but said around a third would be lost in similar disruptions.
Mr Wade said AMP is a leader in the sector, “engaging with government, regulators and industry to chart the way forward”.
