These comments coincided with the launch of the UK-based investment service’s client review process.
Dynamic Planner boss Ben Goss said, during an event attended by International Adviser, that the ever-growing need for consumer protection, the ageing population and the rise of tech are changing the sector.
“Consumer protection is rising in every industry but even more so in financial services,” said Goss. “We think about what the FCA has done with suitability in 2011, with the retail distribution review (RDR) and the banning of commission, and more latterly with Mifid II and Prod.
“There is a growth in financial planning away from selling products. There is a rising bar in consumer protection. That isn’t going to stop in any industry, and ours is no exception.”
Goss added: “The population of post-65 year olds will be larger than greater London in the next 50 years.
“That is a lot of people who are facing perhaps the most challenging time of their lives economically.
“Try advising someone who is facing 20-30 years in retirement on the back of an envelope with a pencil.
“It is only going to get more challenging. The search for income in this environment for an increasingly retiring population has forced managers to seek returns in ever more risky places.
“That is something that is challenging the financial advice profession and it is not going to go away.”
Goss also said that the financial industry’s move into a mobile era is an opportunity but the ‘digitise everything’ approach can be a “real challenge” for the industry.
“In a tech-driven world, where experience is vital, the relationship of a financial adviser and client is fundamental to success,” he added.
The firm has rolled out a client review process called Dynamic Planner Elements for advice firms based across the UK, in a bid to “take the grunt work out of delivering analysis and content”.
The programme will:
- Deliver informed and “enjoyable” client review meetings;
- Meet Mifid II requirements without having to leave the Dynamic Planner service;
- Reduce time spent on annual client reviews from hours to minutes;
- Demonstrate value to clients with a report styled like a lifestyle magazine; and
- Allow easier collaboration between colleagues and clients through intuitive tech for use on mobile, tablet and computer.
Dynamic Planner Elements has been developed in collaboration with advice firms for the past 18 months, with over 100 advisers using the process since January.
Goss added: “Suitability and ensuring investment suitability is fundamental to this kind of response for greater consumer protection.
“You can’t keep up with the bar that is going higher and higher. An ongoing service 18 months ago was sending an evaluation report with a market commentary, today on every investment you hold there has to be a report.
“Gone are the days where you can send out one sheet of paper about evaluation.”
Dynamic Planner Elements will be available at no additional cost for all current users of the full service.
The firm is also looking to expand Elements out to other jurisdictions like Europe.
“Dynamic Planner is used by advisers in about 12 different countries at the moment. We have a research project where we are looking at Europe and other countries,” said Goss.
“Mifid II is a European regulation and clearly we have built elements with the ability to meet Mifid obligations at the gate.
“We are interested in whether other countries are facing the same kind of challenges that we have been discussing.”
Dynamic Planner recently signed a triple partnership deal with pensions specialist Royal London, VitalityInvest and back office software provider Intelliflo.