Is Whole-of-Market Still Relevant to Modern Financial Advice?

The term ‘whole-of-market’ has long been associated with financial advisers who provide comprehensive access to a wide range of products and services. Traditionally, this designation signified an adviser’s ability to offer unbiased recommendations by considering all available options in the market. However, as the financial industry evolves, the relevance of the whole-of-market approach is being re-evaluated.

Understanding Whole-of-Market

A whole-of-market adviser assesses the entire spectrum of financial products to recommend solutions tailored to a client’s specific needs. This approach contrasts with ‘restricted’ advisers, who are limited to a select range of products or providers. The Financial Conduct Authority (FCA) outlines these distinctions to help consumers make informed choices about the advice they receive.

Shifting Focus: From Product Access to Holistic Advice

The financial advisory landscape has undergone a significant transformation in recent years. While historically, advisers were often judged by the breadth of their product access, modern clients are placing greater value on comprehensive, tailored financial planning. This shift reflects a growing demand for advisers to serve as holistic planners rather than merely product providers.

From Product-Centric to Client-Centric

Traditionally, being ‘whole-of-market’ was viewed as the gold standard for independence in financial advice. Advisers with this designation could explore the full range of financial products, ensuring they recommended solutions free from bias. However, as clients become more financially aware, they increasingly prioritise the quality and relevance of advice over the sheer variety of available options.

Clients are no longer just seeking access to a wide array of investment funds, insurance policies, or retirement solutions. Instead, they want advisers who:

Understand their financial circumstances holistically, including income, expenses, assets, and liabilities.
Consider their life goals, such as buying a home, funding education, retiring comfortably, or leaving a legacy.
Account for their personal circumstances, including health, family dynamics, career trajectory, and future aspirations.

The Appeal of Holistic Financial Planning

Holistic financial advice focuses on creating a comprehensive plan that integrates every aspect of a client’s financial life. Rather than simply recommending the best product, advisers take a broader view, ensuring all elements of a client’s financial strategy work cohesively.

This approach addresses several key client concerns:

Personalisation: Clients want solutions tailored to their unique needs, not generic recommendations.
Long-Term Planning: Beyond immediate financial goals, clients seek strategies that anticipate future changes and life events.
Proactive Adjustments: A holistic approach ensures that plans evolve alongside changes in the client’s life or economic environment.

Reevaluating the Whole-of-Market Designation

The evolution towards holistic planning does not render the whole-of-market designation obsolete, but it does shift its importance. While access to a comprehensive range of products remains valuable, it is no longer enough on its own to meet client expectations.

The modern client expects their adviser to:

Use whole-of-market access as a tool, not the focus of the relationship.
Prioritise understanding their life story over simply offering product recommendations.
Deliver advice grounded in empathy, expertise, and an understanding of both financial and personal objectives.

Implications for Financial Advisers

Advisers who fail to adapt to this new client-centric approach risk being seen as transactional rather than transformational. Conversely, those who integrate whole-of-market access into a broader, holistic planning model can differentiate themselves in a competitive industry.

By recognising that the client’s financial life is about more than just products, advisers can deliver a service that builds trust, loyalty, and long-term satisfaction. This shift challenges advisers to expand their skillsets, deepen client relationships, and embrace a more consultative role.

This evolution in expectations raises important questions for advisers. Does the whole-of-market label still resonate with clients? Or is it the ability to deliver tailored, comprehensive advice that truly sets an adviser apart? For today’s clients, the answer often lies in how well an adviser balances the two.

The Role of Whole-of-Market in Modern Financial Advice

While access to a comprehensive range of products remains valuable, it is no longer the sole indicator of quality advice. The emphasis has moved towards:

Personalised Financial Planning: Advisers are now expected to provide tailored strategies that align with individual client objectives, risk tolerance, and time horizons.
Client Education: Empowering clients with knowledge about financial concepts and products enables them to make informed decisions.
Ongoing Relationship Management: Continuous engagement and periodic reviews ensure that financial plans adapt to changing circumstances and remain aligned with clients’ goals.

Balancing Product Access with Client-Centric Advice

While the whole-of-market approach offers extensive product access, it should be integrated into a broader, client-focused advisory model. Advisers can achieve this balance by:

Conducting Comprehensive Assessments: Understanding clients’ unique financial situations and aspirations is crucial for effective planning.
Maintaining Transparency: Clearly communicating the scope of services, including any limitations, fosters trust and sets realistic expectations.
Staying Informed: Keeping abreast of industry developments ensures that advisers can offer relevant and up-to-date advice.