Financial advisers need to become more like a chief financial officer to help clients manage all their financial needs.

Speaking at an Institute of Actuaries of Australia meeting in Sydney last week, training consultant Martin Mulcare said financial planners need to start taking a holistic approach.

He told insuranceNEWS.com.au the recent economic turmoil has thrown the financial services industry into the spotlight and it is clear numerous changes are needed if people are going to get through the looming recession.

“We need someone who makes all the different aspects of your financial life come together,” he said. “People with very serious financial challenges need someone to do this for them.”

Mr Mulcare says it is time for financial advisers to move away from just providing advice on investments and products and take a “CFO approach” where they manage all financial aspects, including outsourcing.

“People who do have financial challenges are looking for advice, not investment or retirement help,” he said. “The emphasis needs to be on the client, not the client’s money. They have to listen to their client’s problems and goals.”

He says this advice model has certain pricing and technology implications and the industry should explore product design to move away from advisers being remunerated through a product.