Axa has developed an operational framework for its Financial Advice Network to help practitioners adapt their business models to fit the new statutory requirements recently announced by Financial Services Minister Chris Bowen.
The project to implement the framework is named Future Ready and comprises five key initiatives, covering off the client value proposition and value of advice, marketing advice, documentation of advice, methods of payment for advice, and education.
In regard to the client value proposition and value of advice, Axa is helping advisers to both formulate their revised remuneration structures and communicate the changes to their clients.
Communicating the value of advice within the Future Ready initiative to clients involves four elements.
"One is the practical value - that's having the hassle removed from having to do things themselves. There's the financial value that can be delivered by the adviser to their client as part of the advice they're providing. There's the emotional value that has to do with the client's whole peace of mind and all of the emotional attachments to taking control of their financial life, and the intrinsic value of advice," Axa Financial Advice Network national manager business and marketing programs Sam Aylett said.
In terms of marketing Axa has provided an enhanced range of marketing materials, including an online document that allows practices to use it and adapt it if necessary to apply individual brands, colours and styles.
The dealer group has also improved the advice documentation for its advisers, making items like statements of advice simpler with plain English terms and clearer definitions.
"We went through a process of really working out what we believed the documents were supposed to do, so we tried to create the document first and then made sure it was compliant," Axa general manager advice and licensing Simon Wallace said.
Axa has also implemented a variety of payment methods to give clients flexibility, including installing eftpos facilities in practices.
The dealer group is also taking the opportunity to improve the education standards among its authorised representatives, and is requiring individuals with a Diploma of Financial Planning to attain an Advanced Diploma of Financial Planning within the next two years.
