Towry predicts rise in ‘multi-channelled’ advice

Towry predicts rise in ‘multi-channelled’ advice

Advisers need to be ready for a new set of challenges from government reforms around pensions, with the need for professional qualifications being greater than ever, according to John Porteous, head of client proposition at Towry.

He told FTAdviser, that despite having to deal with many complex changes to the pensions system, advice will still have to be accessible and could drive innovations around what he termed ‘multi-channelled’ business models.

“This is fuelled by recent advances in technology and the resulting expectation, from some clients at least, that the industry can provide well-designed solutions to bridge the gap between guidance and full advice.

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“The emergence of more simplified advice models for clients who wish to receive a ‘light-touch’ approach via annual reviews, but do not wish to pay for regular face to face advice is likely to develop further.”

Mr Porteous commented that it will be interesting to see how far the envelope is pushed in seeking to service this market, given the emerging consensus over the necessary breadth of any guidance or advice for at-retirement clients.

“In particular, the new pension reform will shine a light on the need to consider a wider view of retirement when embracing the freedoms that will be on offer – whilst this will be liberating for some, it also highlights the need for balanced and thoughtful advice.

“This is a huge opportunity to showcase the value of advice, but such freedoms do not come without risk.”

Turning to markets in the year ahead, Mr Porteous said he believes asset managers are going to need to work hard to deliver strong returns in 2015.

“We have had relative market stability over the past couple of years, and may be due more volatility in the months ahead. A risk-targeted approach to investing is likely to pay dividends, particularly in the context of a well-defined financial plan.”