Money matters: Revenue declines as investors lose confidence in industry services

The Financial Planning and Investment Advice industry has changed significantly over the past five years. The Federal Government implemented the Future of Financial Advice (FOFA) reforms 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. In addition, the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry has placed significant regulatory pressure on industry operators. The Commission has found operators in breach of FOFA legislation. In particular, AMP, Commonwealth Bank (CBA), NAB and Westpac were found to have charged fees to customers without providing a more.

Industry Statistics & Market Size
Annual Growth 14-19
Forecast Growth 19-24

Industry Threats & Opportunities

  • Regulatory reforms have significantly changed the industry over the past five years
  • SMSFs have grown in popularity over the past five years, supporting industry revenue
  • Industry profitability is anticipated to fall as firms lower their prices to attract clients
  • Industry Report - Industry Investment Chapter

    The Financial Planning and Investment Advice industry displays moderate capital intensity. For every dollar paid as wages in 2018-19, an estimated $0.27 is spent on capital investment. Industry productivity largely depends on the skills and attributes of financial advisers to deliver sound and quality advice tailored to the client's financial situation. Experienced financial advisers tend to have a greater funds under advice and higher productivity.The industry is labour-intensive, with wages being the largest cost. Labour costs include wages, salaries and benefits paid to professionals and administrative staff. Industry firms also incur costs associated with ongoing training and professional development. How...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
  • SMSF 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
  • Robo-advisers
  • 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
  • SMSF 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
  • Profit
  • Wages
  • Depreciation
  • Other
  • 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, Westpac Banking Corporation, Commonwealth Bank of Australia, IOOF Holdings Ltd,
  • Table: AMP Limited - financial performance
  • Table: Westpac Banking Corporation - financial performance
  • Table: Commonwealth Bank of Australia - financial performance
  • Table: IOOF Holdings Ltd - 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 (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)

  • 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.
  • Robo-Advisers
  • An automated online advice service that employs technology to deliver investment advice. Robo-advisers charge lower fees than traditional financial planners and advisers.
  • 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 offers insightful industry analysis and research into the market at the national level. IBISWorld’s in-depth industry market research is presented in a logical and consistent format. The industry report contains key industry statistics, market size, industry trends, and growth and profit forecasts for a 5-year outlook period.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
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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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