Innovation in advice and customer engagement - lessons from the FPA

2021 AdviceTech Masterclass

Innovation in advice and customer engagement lessons from the FPA

This document is for general use. Modification of content is prohibited unless you have Netwealth’s express prior written consent.

Before we get started This document is for general use.

This information has been prepared by Netwealth. Whilst reasonable care has been taken in the preparation of this presentation using sources believed to be reliable and accurate, to the maximum extent permitted by law, Netwealth and its related parties, employees and directors and not responsible for, and will not accept liability in connection with any loss or damage suffered by any person arising from reliance on this information.

Netwealth Investments Limited (Netwealth) (ABN 85 090 569 109, AFS Licence No. 230975) and Netwealth Superannuation Services Pty Ltd (ABN 80 636 951 310), AFS Licence No. 528032, RSE Licence No. L0003483 as the trustee of the Netwealth Superannuation Master Fund, is a provider of superannuation and investment products and services, and information contained within this presentation about Netwealth’s products or services is of a general nature which does not take into account your individual objectives, financial situation or needs. Any person considering a financial product or service from Netwealth should obtain the relevant disclosure document at www.netwealth.com.au and consider consulting a financial adviser before making a decision before deciding whether to acquire, dispose of, or to continue to hold, an investment in any Netwealth product.

Housekeeping

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2021 AdviceTech opportunities

How to become an AdviceTech Star

Client data as the core of your AdviceTech stack

A digital experience is more than a Zoom meeting

Portfolio construction at scale with managed accounts

How to educate clients with content marketing

The Emerging Affluent – an important group of millennials

AdviceTech and client engagement Hi Bianca, here is the investment document I mentioned on our call last week.

No problem. You can pick the best channel to keep talking when you’re back.

WhatsApp

WhatsApp

Facebook

Investment.pdf Doc type – 758 kB

Selected benefits received as a result of AdviceTech FY2020 Improved client engagement and communication

59.8%

Improved client satisfaction

38.8%

More time spent with clients

41.1%

Call me direct

Thanks S. I’ll take a look tonight

Meet Ben Marshan from FPA • Head of Policy, Strategy and Innovation • At the Financial Planning Association (FPA)

Client Engagement Masterclass BEN MARSHAN HEAD OF POLICY, STRATEGY AND INNOVATION FPA 11 NOV 2021

The Problem with Financial Services 5 Laws

8 Regulators Financial Advice

9 Disciplinary / Complaints Systems

2 Ombudsman

Change coming from everywhere Government Departments

Government

• Ministers • Opposition • Cross Benchers

• • • • •

Treasury Finance Social Services Health & Aged Care Attorney General’s Department • Education & Training

Regulators and Ombudsman

• • • • • • • •

ASIC TPB AUSTRAC ATO OAIC APRA FASEA ACCC

• AFCA • ASBFEO

Associations

• • • • • • • • • • • • •

AFA ABA FSC SMSFA CPAA CAANZ IPA SFAA ASFA AIST ISA CHOICE NSA

Just the Corporations Act

• • • •

Defined terms are used 164,000 times in the Corporations Act 13 different concepts for financial product 24,000 legislative instruments attached to the Corporations Act 3,796,505 words in the Act, Regs, LI’s

Is it a financial product or not?

To provide a PDS….or not…….

Costs to practice Licensee • Compliance • Technology • Support

AFCA

ASIC

TPB

PI

Education

CSLR

Audit/Financial reporting

Regulatory Changes FSCP/Registration/FASEA/TPB-TASA

FPA

Advice Process

Advice delivery takes time and costs a lot

Average time taken to deliver a comprehensive financial plan The cost to provide a comprehensive financial plan

26 hours

$3,715 through to $6,063

Creating efficiencies leads to……

Spending more time with clients

Seeing more clients

Improved Creates scale communication in all aspects and better of business demonstration of value

• Andragogy: Adults are different to children • Adults should be involved in instruction • Problem-centred not content centred • Don’t start with content • Grown ups don’t want to be educated

It’s not about the money Greed Hedonistic Bias Self Identity Peace of Mind Security

•

Sense of ‘cohesion’

•

Confidence

•

Control

Mind the Gap Mindset – Understanding over disclosure

Interest in Communication Technology

Statement over document RG 90.14 The purpose of an SOA is to communicate to the client important and relevant information about the advice being provided to enable the client to make an informed decision about whether to act on the advice. clear concise and effective RG175 + RG90

How adults learn and understand

• Lost in translation

• Effective Communication

It’s not about the output, it’s about the process

Q&A

Your AdviceTech toolkit www.netwealth.com.au/advicetech #action Read the full report Part A: Insights Part B: Suppliers guide

#action Run an internal AdviceTech workshop

#action Watch the 2021 AdviceTech Keynote presentation with Matt Heine

Disclaimer This document is for general use.

This information has been prepared by Netwealth. Whilst reasonable care has been taken in the preparation of this presentation using sources believed to be reliable and accurate, to the maximum extent permitted by law, Netwealth and its related parties, employees and directors and not responsible for, and will not accept liability in connection with any loss or damage suffered by any person arising from reliance on this information.

Netwealth Investments Limited (Netwealth) (ABN 85 090 569 109, AFS Licence No. 230975) and Netwealth Superannuation Services Pty Ltd (ABN 80 636 951 310), AFS Licence No. 528032, RSE Licence No. L0003483 as the trustee of the Netwealth Superannuation Master Fund, is a provider of superannuation and investment products and services, and information contained within this presentation about Netwealth’s products or services is of a general nature which does not take into account your individual objectives, financial situation or needs. Any person considering a financial product or service from Netwealth should obtain the relevant disclosure document at www.netwealth.com.au and consider consulting a financial adviser before making a decision before deciding whether to acquire, dispose of, or to continue to hold, an investment in any Netwealth product.