Not going to plan: Falling consumer confidence in the industry has negatively affected revenue

The Financial Planning and Investment Advice industry has changed significantly over the past five years. The Future of Financial Advice (FOFA) legislation was introduced in July 2013, in response to several cases of poor financial advice from industry professionals that led to significant losses for clients. The FOFA reforms aim to ensure the industry’s professional integrity and transparency. The Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry has placed significant regulatory and consumer pressure on industry operators. The Commission has found certain operators in breach of FOFA legislation. In particular, certain AMP licensees were found to have charged fees without providing a service. Industry revenue is expected to decline by more.

Industry Statistics & Market Size
Annual Growth 13-18
Forecast Growth 18-23

Industry Threats & Opportunities

  • The industry’s structure is expected to continue changing due to regulatory reforms
  • The popularity of SMSFs has grown rapidly over the past five years, supporting industry revenue growth
  • Industry profitability is anticipated to fall as firms lower their prices to attract clients
  • Industry Report - Industry Locations Chapter

    Financial planning and investment advice establishments are generally located near major business and financial hubs, areas of high population density and areas with a high level of high-income earners. The head offices of investment advice firms are those of major banks, insurance offices and investment managers located in the financial centres of Sydney and Melbourne. These offices also provide support for dealer groups located nationwide.New South Wales is estimated to have the highest number of financial advisers in Australia. This is because the head offices of many advisory firms are located in Sydney, Australia’s financial hub, and the population distribution and proportion of high income earners attributed to this state. As ...purchase to read more.

    Additional Insights for the Financial Planning and Investment Advice Industry

    IBISWorld has determined the most important Key Success Factors for the Financial Planning and Investment Advice are:

  • Ability to effectively communicate and negotiate
  • Must have licence
  • Having a loyal customer base
  • IBISWorld analysts also discuss how external factors such as High income earners and All Ordinaries index in the Financial Planning and Investment Advice industry impact industry performance..

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    What's in this report

    What is the Financial Planning and Investment Advice Industry?

    Establishments in the industry provide financial planning and advice to clients.

    Industry Products
  • Superannuation and retirement advice
  • Loan and investment advice
  • Self-managed super fund advice
  • Tax advice
  • Other services
  • Industry Activities
  • Financial planning
  • Investment advising
  • Financial asset investment consulting
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • High income earners
  • All Ordinaries index
  • Real household disposable income
  • Population aged 50 and older

  • Current Performance
  • Funds under advice
  • FOFA reforms
  • Royal commission and scandals
  • Chart: Revenue Growth

  • Industry Outlook
  • Opportunities

    and threats

  • Higher industry standards
  • Table: Financial Planning and Investment Advice Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Financial Planning and Investment Advice Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Residential Property Operators
  • Consumers

  • Key Selling Industries
  • Accounting Services
  • Advertising Agencies
  • Technical and Vocational Education and Training

  • Products & Services
  • Superannuation and retirement advice
  • Self-managed super fund advice
  • Loan and investment advice
  • Other services
  • Tax advice
  • Chart: Financial Planning and Investment Advice Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Highest income quintile
  • Fourth income quintile
  • Third income quintile
  • Second income quintile
  • Lowest income quintile
  • Chart: Major Market Segmentation for the Financial Planning and Investment Advice Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Financial Planning and Investment Advice

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Financial Planning and Investment Advice Industry

  • Industry Globalization
    AMP Limited, IOOF Holdings Ltd, Westpac Banking Corporation, Commonwealth Bank of Australia,
  • Table: AMP Limited - financial performance
  • Table: IOOF Holdings Ltd - financial performance
  • Table: Westpac Banking Corporation - financial performance
  • Table: Commonwealth Bank of Australia - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Financial Planning and Investment Advice Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Financial Planning and Investment Advice Industry
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Funds Under Advice
  • The value of funds placed for investment purposes through a financial adviser or planner.
  • Investment Platform
  • Investment platforms allow investors to hold and manage a portfolio of investments.
  • Self-Managed Superannuation Fund (Smsf)
  • ATO-regulated superannuation entities that have less than five members, all of whom are trustees or directors of the corporate trustee.
  • Trailing Commissions
  • Commissions paid to advisers and planners on an ongoing basis while the business they have generated remains in force.
  • Wrap Account
  • An account which consolidates various investments under one administrative umbrella.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Financial Planning and Investment Advice market research report is a comprehensive guide to market size and growth prospects. Our industry reports offer strategic industry analysis of the factors influencing companies, including new product developments, economic, lifestyle and demographic influences, distribution and supply chain factors and pricing issues. Full analysis accompanies our data forecasts to illustrate how the market responds to emerging industry trends.

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    This report on Financial Planning and Investment Advice:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Financial Planning and Investment Advice market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Financial Planning and Investment Advice, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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