Impact of the Hayne Royal Commission on the Operating Model of Australian Financial Advice Firms

Doctorate other than PhD


Abu-Taleb, Mohammad. 2022. Impact of the Hayne Royal Commission on the Operating Model of Australian Financial Advice Firms. Doctorate other than PhD Doctor of Business Administration. University of Southern Queensland. https://doi.org/10.26192/wq784
Title

Impact of the Hayne Royal Commission on the Operating Model of Australian Financial Advice Firms

TypeDoctorate other than PhD
AuthorsAbu-Taleb, Mohammad
Supervisor
1. FirstDr Afzalur Rashid
2. SecondA/Pr Syed Shams
3. ThirdHabib Zaman Khan
Institution of OriginUniversity of Southern Queensland
Qualification NameDoctor of Business Administration
Number of Pages122
Year2022
PublisherUniversity of Southern Queensland
Place of PublicationAustralia
Digital Object Identifier (DOI)https://doi.org/10.26192/wq784
Abstract

The financial services Royal Commission's final report has resulted in significant reforms in the financial advice industry. The Hayne's recommendations represent a challenge to advisory firms to review their current business operating models in order to enhance customer outcomes and profitability. This thesis aims to explore the impact of the Royal Commission’s recommendations on the operating model of advice businesses in terms of advice products, processes, delivery models and customer segments. Furthermore, this thesis seeks to investigate whether the Royal Commission’s outcome has accelerated the use of enhanced technology solutions within the operating model of advice entities. To identify the key challenges confronting advisory firms whilst implementing the Commissioner’s recommendations across their operational models, a qualitative research design has been adopted. Semi-structured in-depth interviews were conducted with 24 advisers and managers engaged in the operation of financial planning services. At the same time, a thematic analysis approach has been used to interpret the qualitative data collected from the interviews. The findings of this thesis reveal that customer-centric operating models will become more prominent across the Australian financial planning industry in response to the Commissioner’s final report. The Royal Commission’s outcome has accelerated the use of advice technology solutions within the operating model of advice entities. It is found that financial advisers have started using more automated web-based advice services, which enable them to provide simple advice on a greater scale, and to accelerate the use of robo-advice models and digital delivery to mass customers in the longer term. The study identifies process and technology changes with technical and interpersonal skills development, as the critical challenges encountered by advice practices whilst implementing the Commissioner’s recommendations across their operating models.

KeywordsRoyal Commission; financial planning advice; operating model; advisory firms; customer-centric model; digital advice solutions
Contains Sensitive ContentDoes not contain sensitive content
ANZSRC Field of Research 2020350204. Financial institutions (incl. banking)
350299. Banking, finance and investment not elsewhere classified
350712. Production and operations management
359999. Other commerce, management, tourism and services not elsewhere classified
Public Notes

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Byline AffiliationsSchool of Business
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The Hayne Royal Commission and the financial planning advice: A review of the impact on the operating model of financial advice firms
Abu-Taleb, Mohammad, Rashid, Afzalur and Shams, Syed. 2021. "The Hayne Royal Commission and the financial planning advice: A review of the impact on the operating model of financial advice firms." Financial Planning Research Journal. 6 (1), pp. 74-85.