HNW Planning reinforces need for advisers to advise on more than product, investment and insurances through association with Equity Trustees

There is constant debate around vertically integrated vs independent models, industry funds vs retail, assets fees vs time billing. You know all the usual suspects.

But all the differing points of argument are converging to a broader agreement that there is a split between “refined advice services” and “commoditised product delivery”.  The lines between these two are complex, multi-layered and confusing to see from the inside out. Indeed, many on one side of the divide think they’re on the other side.

– Large companies dominate the commoditised product delivery side. But many “refined advice minded advisers” are indentured to commoditised product deliverers through imbedded dependencies.
– Boutiques and self-licensed advisers dominate the refined advice services. But many “commoditised product delivery” structures depend on appearing refined.

The lines between “refined advice services” and “commoditised product delivery” will always be blurred as concepts are tested and best ideas from one side are adopted by and improved or dismissed by another. But “refined advice services” needs must constantly differentiate and lead in defining our profession in business ethics to service our clients’ best interests.

Boutique AFSLs must support advisers with the innovative services they need to provide “refined advice services”. This includes:

– A sharp, continuous and dominant focus on strategy rather than product,
– Direct and specific property advice through the SOA process,
– Direct shares and other initiatives to lower costs,
– SMSFs earlier and cheaper for more clients,
– Tossing out the traditional risk-profiling rubbish that is otherwise an endemic and disturbing abrogation of the responsibility to know your client, and
– A whole of country, consistently delivered and reliable estate planning service that allows the adviser to earn a declared margin for the tasks involved in facilitation of that care.

HNW has formalised an arrangement with 180 year old Equity Trustees to deliver estate planning support services. All of our advisers are now able to access a comprehensive estate planning support service for their clients and the benefits for all involved are substantial. The client-adviser relationship at the core of any “refined advice service” is enhanced through this service.

None of us can beat the clock, we will all die. Being advised in preparation for that event has been a neglected part of the advisory process. We’ve addressed this and HNW’s advisers have yet another positive arrow in their quiver to complement our full advisory offerings and to differentiate themselves from “commoditised product deliverers”.

We should all remember our primary calling is as advisers. Clients want and expect us to be able to advise them in many different areas. HNW remains fundamentally committed to ensuring that our advisers can provide innovative solutions to their clients. Refined advice service is part of a package. It starts with the ethical positioning and alignment of the AFSL and adviser.

There will always be clients prepared to pay for genuine advice that has their interest at heart. An adviser’s coordination of and involvement in the estate planning process should also, and quite reasonably, allow an adviser a commercial margin. Estate planning is part of a virtuous cycle of “refined advice service”. Lose track of the clients’ needs and the whole business suffers regardless of whether it’s vertically integrated or independent, retail or industry super. Clients want solutions to problems. HNW are here to help “refined advice service” advisers to do that.

HNW Planning is based in Erina on Central Coast of NSW. It currently has 50 AFSL representatives and 6 ACL representatives. Associated companies offer Mentoring, SMSF Administration, Property and General Insurance. HNW has proprietary web-based financial planning and business enterprise support software. This software enables the delivery of AFSL services to advisers and it also allows the delivery of refined advice services by our advisers to their clients. The software is described by our PI insurer as “easily the best in the business” and HNW is prospectively described  business coaches as “mad if we let anyone else use it”.