Scaled advice key to engaging SMSF trustees

Although some SMSF trustees already utilise an adviser, many don't want to pay for full holistic advice and use an accountant for the services they require. However, there is now an opportunity through scaled advice for planners to target the more do-it-yourself type trustee, according to Provisio director Cameron O'Sullivan.
"Scaled advice offers an opportunity to service trustees who just want advice around [things like] contributions and transition to retirement. Previously, advisers would have tried to go down the full holistic path and the original message would have been lost," O'Sullivan said.

"The holistic advice model doesn't suit many SMSF trustees as they self-directed with many of their investments, and as advisers have traditionally struggled with scaled advice, the trustees have been more likely to engage with an accountant than a financial planner."

Improvements in advice software can also help advisers in the area of scaled advice because it allows a more upfront, point-of-sale type offering, he said.

The adviser should be able to run some 'what if's', look at the potential benefits and agree to a strategy with the client, then in only one or two clicks generate a form, O'Sullivan said.

Software is still mostly viewed as part of the back office, so the adviser will conduct a client interview then the paraplanner spends four to six hours developing a statement of advice.

But the opportunity now, with scaled advice, means advisers can use the software upfront in the client meeting to generate a shorter, more concise document, he said.

"The advisors having success with scaled advice have made big inroads with efficiency. They have been able to trim down the time taken to process scaled requests from many hours to minutes, in some cases."