The Association of Financial Advisers (AFA) has encouraged members to consider repositioning their practices to address changing consumer preferences, technology and the cost of delivering advice.

It follows a three-day summit of the country’s 15 leading advice practices.

AFA CEO Brad Fox says the summit shows advisers must think beyond simply providing advice, and look at the changing world.

“We understand from our members many feel under pressure from the change in trends in the financial advice landscape,” he said.

“Advisers need to develop a deep understanding of these macro trends and use that as the basis to refine the strategy, culture and architecture of their advice practices.”

Sessions at the summit considered how political, market, economic, digital and consumer trends are affecting the delivery of advice.

Traditional advisers are challenged by new competitors and different ways of delivering advice that go direct to the consumer.

Delegates identified a growing number of new entrants that will not charge commission on life insurance.

“As disruptors to the traditional advice models they may succeed or fail; either way, it means existing advice practices need to consider what is the business formula for success and be prepared to adapt,” Mr Fox said.

“Political, economic, societal, digital and legislative paradigms are shifting – and adapting business strategy is essential.”

A shared theme at the summit was the desire for solutions that provide end-to-end practice management and client experience functionality.

“The need for greater efficiency in the back office, together with the desire for greater client engagement and user experience, is a high priority for these leading practices,” Mr Fox said.

“Delegates described nirvana as the high-touch, low-cost, high-tech model.”