Marketing & Media trends
- 10 predictions around fintechDominique Collett
- The 4 themes for the new yearAndrew Duvenage,
- 3 wealth management trends to watch in 2021Maarten Ackerman
- 4 strategies to rethink investing in SMEsKuhle Mnisi
- Microinsurance ready to reach new heightsMarius Botha
- Finding alpha in the age of Covid-19Nema Ramkhelawan-Bhana
- Purpose or profit. It's not a choiceMike Middleton
- Shifting towards a digital - but still human - approachHenry van Deventer
Construction & Engineering trends
- 3 major trends in the commercial property space in AfricaPeter Hodgkinson
- A bright horizon for South Africa's energy landscapeBarry Bredenkamp
- Achieving developmental goals through constructionCyril Vuyani Gamede
CSI & Sustainability trends
- Time for NPOs to show their real impactKeri-Leigh Paschal
- 5 sustainability trends that will shape business in 2021Christelle Marais
- 4 trends set to continue or be re-interpreted in the NGO sectorInnocent Masayira
- Strengthening NPO skills and processesNazeema Mohamed, Feryal Domingo and Soraya Joonas
- Sustainability is key for social investment in 2021Keri-Leigh Paschal
- 4 trends in employee skills development and training you need to know for 2021Siphelele Kubheka and Desikan Naidoo
Energy & Mining trends
HR & Management trends
- 4 areas in which your business can practice its swivelFrancois Kriel
- 5G is coming. Here's what it could mean for SASamantha Naidoo
- 3 big issues demanding legal attention this yearJonathan Veeran, Nozipho Mngomezulu and Burton Phillips
Logistics & Transport trends
Marketing & Media trends
- Tech democratisation will set the tone for 2021Andrew Smit and Johan Walters
- Auction industry survival depends on going virtualJoff van Reenen
- Covid-19 drives new trends in local property marketMarcél du Toit
- A bold year for beveragesAlex Glenday
- Acceleration of digital paymentsJonathan Smit
- Safety vs sustainability - the packaging industry's key conundrumNthabiseng Motsoeneng
- The evolving e-tail landscapeVilo Trska
#BizTrends2021: Shifting towards a digital - but still human - approach
Relationships change all the time and the one between financial advisor (FA) and client is about to undergo a big shift due to regulatory issues, as well as more ordinary social trends after the Covid-19 pandemic.
Henry van Deventer, chief specialist in advice model design at Liberty
More online engagement
Before the pandemic, virtual financial advice was rare, but with changes in the working environment taking place, FAs have been asking themselves how they can extend the value of their relationships online.
On one level, online meetings can save a lot of time, and in some ways, improve accessibility. An online advisor can be requested for discussion much faster than they would in the physical world of traffic jams and over-running meetings.
Studies have shown that once clients become comfortable with their advisor relationship having a virtual dimension, the vast majority are satisfied with this medium for certain future engagements. While it’s unlikely that online consultations will fully replace face-to-face meetings following the pandemic, it was a relief that people were so willing to evolve and accept new mediums of interaction.
Regulatory changes that are shaping the advice environment
At present South African regulation and legislation is going through a profound and unprecedented process of changing what advice needs to deliver to consumers. This process is called Retail Distribution Review (RDR) and is seeing a number of key changes in the law around, amongst other things, what advisors do and how they will be paid.
The following are especially important changes we will see in the future advice landscape:
- There will be a shift away from product providers paying advisers commission to sell their products. As has been seen elsewhere in the world, we are likely to see a shift towards clients paying their advisers a percentage of their premiums and investment portfolios to pay for advice and services.
- Advisors will need to be able to demonstrate what they did to justify the fees they charged.
- As regulation around Treating Customers Fairly is becoming more entrenched, advisors will increasingly need to be able to show that their clients’ interest were always put first in the advice that they gave and the products they selected.
About the author
Henry van Deventer is the chief specialist in advice model design at Liberty.
Read more: Liberty, regulation, financial advisors, treating customers fairly, Henry van Deventer, Retail Distribution Review