The imminent onset of a $120 billion advice boom will offer the financial planning industry a plethora of opportunities, according to Financial Services Partners (FSP) chief executive Geoff Rimmer.
"This is not related at all to whether the markets go up or down. In fact, that is going to make a contribution towards it," he told delegates at the FSP annual conference last week.
Since September last year people who have a mortgage have saved $60 billion in interest rate cuts, Rimmer said.
In addition, recent rate cuts will also result in $60 billion of reductions in returns for people with term deposits maturing over the next six months.
"When I say there is going to be a $120 billion advice boom, these people are going to have to talk to somebody," Rimmer said.
"What we've had as a result of this marketplace is not a challenge - for us in the advice industry it is a gift and that is how I think we need to be looking at it."
As the market eventually corrects, businesses with poor advice models will be exposed and therefore provide further opportunities for the industry, Rimmer said.
"We're going to see those individual businesses who haven't invested in the right processes ... find that this artificial foundation that has been sitting there has now gone and they are going to be exposed and that represents great opportunities for everyone," he said.
"Anything less than a client-focused advice model is going to be unacceptable."
