2018 Australian Financial Advice Landscape - Adviser Ratings

2018 Australian Financial Advice Landscape

2018 Australian Financial Advice Landscape

Contents

Size Of The Consumer Advice Market 01 (The Consumer)

Servicing The Australian Consumer 02 (The Adviser)

Suppliers To The Advice Space

03

- Investment platforms, penetration rates and their rating

- Insurance platforms, penetration rates and their rating

- Software platforms, penetration rates and their rating

- Research houses, penetration rates and their rating

- PI insurers and coverage rates

Approved Product Lists

04

- Coverage rates of death and TPD, income protection and trauma insurance by adviser and licensee

- Super funds coverage rates by adviser and licensee o Retail o Public sector o Industry o Corporate

- Product type coverage rates by adviser and licensee o Direct shares o Managed funds o Structured products o Managed accounts o Model portfolios using managed funds o Model portfolios using direct shares

Survey Method

The 2018 Australian Advice Landscape incorporates Adviser Ratings proprietary data, survey information and census data. The detailed analysis is based on an online survey of financial advisers conducted between 22 November 2017 and 13 December 2017. The survey covered a wide set of variable information.

Published Survey

March 2018 Survey was conducted 22 November to 13 December

Client Analysis

05

- Average funds under advice by adviser and practice

- Average number of clients by adviser and practice

- Average age of clients by adviser and practice

- Types of clients by adviser and practice

- Average in-force premiums by adviser and practice

Adviser Analysis

06

- Average Fee Types by adviser and licensee

- Average minimum thresholds (income and assets) by adviser and licensee

- Average practice educational requirements when on-boarding advisers

SMSF Analysis

07

- Proportion of advisers who advise SMSF clients - Average funds under advice v split of SMSF

Adviser Movement Analysis

08

- Number of advisers who have moved between independently owned, institutionally aligned and institutionally owned licensees

- Trend analysis of movements

Socio-Economic Snapshot

09

- Economy - Population - Income

A total of 1,115 valid responses to the survey were received across 285 licensees after data cleaning and de-duplication. The maximum sampling error (centre of the range) at the 95% confidence interval for this sample is +/-2.8%.

Author Contact

Adviser Ratings Research

Mark Hoven mark@.au or 0413 614 640

2018 Australian Financial Advice Landscape

Key Geographic Regions

Adviser Ratings data supplied on the following 59 regions, including economy, population and income snapshot of each region.

New South Wales

- Capital Region - Central Coast - Coffs Harbour-Grafton

+ Richmond-Tweed - Far West and Orana

+ Central West - Hunter Valley exc Newcastle - Illawarra - Mid North Coast - New England and North West

Queensland

- Brisbane-East - Brisbane-North - Brisbane-South - Brisbane-West - Brisbane Inner City

- Newcastle and Lake Macquarie

- Riverina + Murray

- Southern Highlands and Shoalhaven

- Sydney-Baulkham Hills and Hawkesbury

- Sydney-City and Inner South

- Sydney-Eastern Suburbs

- Sydney-Inner South West + Inner West

- Sydney-North Sydney and Hornsby

- Sydney-Northern Beaches

- Sydney-Outer West and Blue Mountains + Outer South West + South West

- Sydney-Parramatta

- Sydney-Ryde

- Sydney-Sutherland

- Cairns - Darling Downs-Maranoa - Gold Coast - Ipswich - Mackay + Fitzroy

- Moreton Bay-(North + South) - Sunshine Coast - Townsville - Wide Bay

Victoria

- Ballarat - Bendigo - Geelong - Hume - Latrobe-Gippsland

- Melbourne-Inner - Melbourne-Inner East - Melbourne-Inner South - Melbourne-(North + North

East + North West) - Melbourne-Outer East

- Melbourne-South East + Mornington Peninsula

- Melbourne-West

- North West + Murray + Warrnambool and South West

- Shepparton (inc. Seymour)

Western Australia

South Australia

- Bunbury + Mandurah - Perth-Inner - Perth-(South East + South West) - Western Australia-(Outback

+ Wheatbelt)

- Adelaide-Central and Hills

- Adelaide (North + West + South)

- Rest of South Australia

Tasmania

- Hobart - Rest of Tasmania

Australian Capital Territory

- Australian Capital Territory

Australia regions determined according to ABS SA4 Categories + Where two SA4 regions are combined

2018 Australian Financial Advice Landscape

An infographic showcasing results for Adelaide - Central & Hills. The full report spans 59 regions across Australia.

SURVEY DEC 2017

115

1,850

1,115

Total Respondents To Survey

92

1,300

19,600

Total Active Advisers In Australia

293

5,600

213

3,600

354

6,400

19

300

24

270

Adelaide - Central & Hills

Advisers 70 Practices 62 Licenses 46

1,227 542 198

Survey Total Population

The total number of active advisers is approximate and rounded for each state

Following results refer to Adelaide - Central & Hills

40

INVESTMENT PLATFORMS

The independent investment platforms have growing penetration off a low base but exceptional adviser satisfaction

Net Promoter Score Detractors

Passive Promoter

Usage

7%

13%

16%

22 16%

17%

26%

27%

27%

30%

41%

0

5

0

-3

= - Net Promoter Score % Promoters % Detractors

Net Promoter Score

-9

-14

ADVISER MOVEMENT

Number Of Advisers In Last 12 Months

Institutionally Affiliated

Only IOOF experienced net positive inflows of advisers amongst the big 6

Advisers Joining

37

80

47 46

11

148

-18

39

11 12

6

-53 Independently Owned

8

36

4

Institutionally

6

Owned

67

Total Advisers

Advisers Leaving

80% of new advisers joined

independently owned licensees

13% of advisers moved licensee

in last 12 months

VENDOR NET PROMOTER SCORE

0

-50

Planning

50

Software

0

0

Internal

-25 Investment 25 Research

Life -35 Insurance 35

Platforms

APPROVED PRODUCT LIST

Funds 96%

Shares 83%

Models (Funds) 79%

Managed Accounts Models (Shares)

Structured Product

74%

61% 43%

Investments

Retail Corporate

Industry Public Sector

Super Funds

80% 79% 76% 73% 69% 69%

Life Insurers

* Wrap

BUSINESS SIZE

Funds Under Advice

Average

Per Adviser

Per Practice

74% of advisers now have managed

accounts on their menu

CUSTOMER PROFILING

Customers Per Adviser

Adelaide

Australia

In Force Premiums

Annual Average

Per Adviser

Per Practice

Don't advise 18% on life insurance

Demographics

17%

35 - 44

8%

0%

Adviser Ratings is the trusted, independent source of the most comprehensive and up-to-date information on the financial adviser community spanning 24,000 advisers, 8,000 practices and 1,600 licensees.

The 2018 Australian Financial Advice Landscape report draws from our rich database complemented by a survey of 1,115 advisers conducted in December 2017.

For more information on this report please contact CEO Wealth Mark Hoven

mark@.au 0413 614 640

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