Economics gets a nudge in the right direction

This new adviser journey may also require a change in business model, as unlike advice, coaching implies a stronger relationship with the client and therefore more frequent contact.

This transition can only be achieved if the adviser is able to create enough time by removing non-essential elements of the advice process.

While this may create come unsettling change for the adviser, the impact of Thaler and his behaviourally focused colleagues on economics over the last forty years reminds us that while all significant change is uncomfortable, it can lead to great benefits.

Dan Kemp is chief investment officer, Morningstar Investment Management Europe Ltd