Financial Advice Online was developed in direct response to the Quality of Advice Review (Australia). The government wants high quality, affordable and accessible advice for all and is expected to change current legislation to enable this advice to be given, not only by financial advisers, but other members of the Financial Services Industry, such as Superannuation/Pension funds, Wealth Platforms, Digital Banks and those in the Financial Literacy Space.
Financial Advice Online’s cutting-edge technology allows organizations to deliver simple, good advice to all Australians, and can be extended to other countries. It embraces the philosophy of Michelle Levy’s recommendations in the Quality of Advice Review. Now the Financial Services Industry can fulfill the financial needs of all Australians. For most, all they require is guidance from a person licensed to provide “Good Advice”. This could simply range from a road map to the future to very detailed long term financial advice.
The software has been customised for New Zealand financial advisers and can be quickly customised for any other country when required. (See adviceonline.co.nz)
It may take some time before the changes for Financial Advisers are legislated. In the meantime, Financial Advisers could use Financial Advice Online to provide Strategy Documents. If constructed correctly, Strategy Documents may be exempt from the rigid compliance requirements of a Statement of Advice.
Plencore Wealth Ltd has been developing financial planning software as a service for 10+ years. The mathematical model on which the coding has been developed is robust and has withstood the test of time. The software is designed as a quick financial planning tool, but when required, you can take a “deep dive” into the detail of each investment.
The software has been developed to provide financial advice to the mass market at a price they are willing to pay. This may mean that the time or the level of advice provided is determined by the company providing the advice.
Research by Adviser Ratings (Australia) found that 4-in-5 forty-year-olds and early 50-year-olds said they wanted financial advice but did not have the capacity to pay. The same results were given for retirees over seventy-five years old. Financial Advice Online will allow these people and others with few financial assets to access a level of advice they require, at a price they can afford.
The advice is presented as a Financial Plan which the client can review in detail, as well as an Advice Document. All information between the client and the adviser is in a secure portal. No third-party apps are used. Within this portal, the adviser can upload additional documents and financial literacy material. Questions and answers between the two parties in within the portal. Each communication is date stamped.
The secret of success for this software is the automation of the process and collaboration with the client. Financial Advice Online is most likely the only software of this type that allows the client to inspect in detail the financial plan. The client receiving the advice can also generate several smaller reports based on the financial plan. A financial literacy program for clients is included within the software.
The automation process is simple:
- The consumer purchases digital financial advice from the Company’s website and pays the cost online before the advice is delivered. (The company determines the cost of the advice and the limitations of the advice). The client can choose the financial adviser from whom they would like to receive the advice.
- The client completes the Fact Find online and this information is automatically installed in the financial plan. A part of the Fact Find is for the client to nominate their short and long term financial goals or objectives.
- Based on the client’s objectives, the financial adviser optimizes the plan that had been automatically created. When the financial plan is completed, the adviser will write under dedicated heading their comments. These will include Plan Objectives, Main Strategy to achieve Objectives, Debt Management, Insurance Recommendations, Potential Risks, General Comments, Financial Goals and Milestones together with Advice and Limitations of Advice.
- Based on the above information an Advice Document will automatically be created and uploaded to the client’s portal. The client is notified that the Financial Plan and Advice Document have been completed, where the client can log into the secure portal (using 2FA), to view all the information uploaded. After reviewing the information, the client can, within the portal, ask the adviser any questions or request a variation of the plan.
The business model is that each company will pay a fee to upload the Online Advice platform. This fee allows the company to fully customise the platform and the content of reports. Each Financial Adviser will upload a profile which is included in the final Advice Document.
For each financial plan and advice purchased, the company will pay one flat fee to Plencore Wealth Ltd. The financial adviser can moderate the plan and advice document as many times as they wish over a 6-month period. After that time, the information is locked and if that client requires more advice, a new financial plan and advice document must be purchased. The company is billed at the end of each month for all advice purchased.
The company can choose the fees they charge clients, but the fee payable to Wealth Plencore Wealth Ltd remains the same regardless of the length of the plan or complexity of the advice.
Plencore Wealth Ltd is open to providing a Master License for a specific country.