Why are financial planners more successful in other countries?

A financial planner asked me, "Why are financial planners more successful in other countries, and more difficult to make a living in Singapore?"

I wish to give a frank answer.

In many countries, the financial adviser can add value by giving advice on how to save tax and benefit from some tax-sheltered schemes. This applies to USA and Australia.

The tax regime in Singapore is straight forward. There are no much tax saving or tax-sheltered schemes. The only scheme is the SRS (supplementary retirement scheme), but it is quite modest.

The best way for a person to save for the future is through a large, well diversified, low-cost fund. Most people will probably benefit by taking this approach, but there is little margin to pay the financial adviser.

The best model for the financial adviser is to give the "no frill" advice and take a small fee. The adviser can earn a larger earning, by serving many customers efficiently.

We should not follow the high cost model in other countries, as they are supported by tax savings (which does not apply in Singapore).