About ‘value’
The value that financial planning advice adds to clients is not challenged by those who engage our services. The ongoing services of an experienced, qualified financial planner irrefutably delivers measurable value. This truth has been verified in research published from time to time (and we have previously posted about their findings).
“Free advice: it costs you nothing; and is worth the price” or so the old adage goes!
Value from FoFA regulation
As financial planners ContinuumFP was very much aware of what the government attempted to get in place during 2012. Commencing with further regulation of the financial services industry, the government framed the Future of Financial Advice (FoFA) regime. This new environment was in response to the Storm Financial situation – or at the least, hastened by it.
Some of the elements of FoFA that readers will be aware of, include:-
- Fee for advice/ fee for service;
- Discontinuation of ‘volume bonuses’ (and commissions?); and
- Opt In for ongoing service.
Clients of financial planners became familiare with these merasures in the ensuing months.
An outcome of the new regime was that more direct payments are made by clients for the services delivered by their financial advisers. The practice adopted by many firms of advisers (including our own) of –
- subsidising the cost of delivering advice and services
- with any commissions or other financial benefits received from the Dealer Group or product providers
will no longer permissable.
Assessing value
As a consequence of this change it became important for advisers to articulate value and justify its cost to clients. We became obliged to demonstrate that we provide Advice of Value. We set some parameters to appraise the value of advice:
Advice should R.A.T.E. according to –
- Relevance – Is the information relevant in the current context: considering personal situations, market trends/ developments and asset risk factors?
- Accuracy – Is the information correct and in the best interest of the client in the circumstances understood to prevail?
- Timeliness – How relevant is the information for implementation within the timeframe of concern/ interest to the client?
- Engagement – Is the information capable of affecting the progress towards achieving a strategic outcome (according to documented and agreed planning)?
…and at the end of all of that, the client should have that peace of mind about their investment strategy and structure that allows them to sleep at night with minimal financial worry.
ContinuumFP values its clients
Our service criteria are clearly set out on our website. The ContinuumFP service delivery is compliant with all regulatory requirements. Our service standard ensures that the best interest of each of our clients is foremost in all considerations.
We look forward to the continuing expansion of the clients benefiting from our services. Our team welcome your referral of family, friends and associates. To make an appointment with one of our expewrienced advisers to discuss these matters –
- phone our office, on 07 34213456, or
- at your convenience, use the linked Book A Meeting facility.
(This article was first published by us in April 2012. We occasionally refresh/ update it, most recently in June 2025.)
