On a recent episode of the ifa Show podcast, FINSIA CEO and managing director Yasser El-Ansary, shared his concerns about a specific area in the advice industry that must be looked at in the upcoming Quality of Advice Review (QAR).
Mr El-Ansary said “far too much complexity” within the sector is affecting adviser numbers and could harm future advisers entering the industry.
“I know this is not an easy one. It’s certainly not a simple challenge. Otherwise, many of us would’ve already done something about it, to be frank,” Mr El-Ansary said.
“But how do we create an environment that supports a growing pipeline of talented professionals coming into financial advice for the future? I think that’s actually a really important challenge.”
The head of the professional membership body for financial services said that the QAR must take the declining numbers and older demographic of the space into account.
“We have an aging demographic in this space. We have to take very measured, well-calibrated steps in order to grow the pipeline of professionals coming into financial services over the coming years,” he said.
“We know that that’s critical.”
However, Mr El-Ansary is optimistic about the QAR, saying that he believes the industry is in a “uniquely different position” compared to when to financial services reforms were being worked through a decade ago.
He also claims a “stronger alignment” within financial advice stakeholders in Australia will only be a boost for the sector in years to come.
“I think it will bode well for the work that [QAR reviewer Michelle Levy] and the team at Treasury are doing now and should create the right environment around which to create an air of support, an air of collaboration and unity in the approach that we all think needs to be taken by the government in order to solve some of these big challenges,” Mr El-Ansary said.
“And I think that’s really one of the biggest opportunities we have in front of us.”
On the same episode, Mr El-Ansary backed Ms Levy to provide recommendations to Treasury that will help increase access to financial advice in Australia.
“[Ms Levy] will already have a very good idea of where the pain points are, where the challenges are and where the opportunities are for our future,” Mr El-Ansary said.
“I think the expectation is certainly there that Michelle will run a very fine-toothed comb over the effectiveness and efficiency of a policy and regulatory environment that sits there at the moment. And again, she will have a starting knowledge of all of that from the role that she’s played in the industry for some time now.”
Listen to the full podcast with Mr El-Ansary here.
I don’t hate anyone enough to suggest they become a financial planner. The QAR will hopefully make it better but realistically there is no logic to suggest this will be the case.
Nice they are talking about “taking measured steps to protect the older adviser demographic”:. Where was this thinking before forcing inappropriately designed exams on older advisers, unfamiliar with such processes and tech, BEFORE they were forced to leave the industry. Compensation now for ruining their businesses? They are certainly not around now to help with mentoring new applicants. the sheer bloody-mindedness of the regulators and ‘powers that be’ is retrograde and disgustingly disrespectful to older advisers and the newbies entering. Everyone loses due to these regulators NOT knowing what they’re doing!
Mr El-Ansary, wonderful rose colored glasses buddy.
Reality is that Ms Levy just recently stated she is EXTREMELY SUPRISED (As was head of AFCA) of the level of utter fear and scared crapless Advisers from the treatment and threatening over tones, mass BS over compliance and draconian regulation by ASIC and AFCA.
So given she has no previous understanding of these long term Regulatory problems, sorry I think your hope is misguided.
I wish you were correct but i’ll bet whatever you like Real Advisers get bugger all out of this review.
The winners will be Industry Super, Intra Fund Sales, Finfluencers, Robo Advice and mass expansion of General Advise.
Whilst Real Advisers will yet again be the loser and will get lumped with more and more BS over compliance.
And don’t forget the continuous and relentless ongoing anxiety and fear, for when ASIC come knocking with a warrant to takeover my house and bank accounts, all because a vengeful ex crooked client wants to exploit the one-sided complaint handling and remediation process. My days are now spent rotating between survival mode to keep up with the Licensee’s overarching documented processes, or pondering an un-conventional wasted and poorly planned physical, mental and financial escape from this bureaucratic regulatory madness.
Look. Things could be sorted out in one afternoon around a table with say six practitioners. Job done.
Yasser it seems like we are all holding our collective breaths whilst awaiting the review due later this year from Michelle Levy. Being optimistic is fine and whilst Michelle is well regarded in the legal field the fact is she has never been a licensed financial adviser means she has never walked in the shoes of any financial planner or financial adviser. Should we not be pessimistic also and at least be questioning why a job as critical as this with outcomes to affect many thousands of stakeholders is being left to just Michelle which is very perplexing? It is 2022 where democracy should trump what looks to be a dictatorial process not withstanding the outcomes…
I agree. Why is it that these seemingly never ending reviews and restructures of the financial advisory profession are conducted by lawyers and public servants (i.e. ASIC) who have not worked as a Financial Adviser or Paraplanner or Support Staff and thus have no concept of what a day in the life of a Financial Advisory Practice looks like. To my mind, for a review like this you would certainly need some legal perspective input, but more importantly, a panel of respected, longstanding, fully qualified Financial Advisers with decades of experience in the trenches would be more appropriate.
Be afraid, be very afraid. Ms Levy is a bad choice for this review. It’s my understanding that she has only every acted for those at the manufacturing end, not us at the coal face. It think it will be difficult for her to look at the review through any other lens other than the manufacturing lens. Fingers crossed I have that wrong, but it ain’t lookin’ good.
Does it come as any surprise, given who the previous Financial Services Minister was and who appointed her? Until the Financial Advice Industry is governed by Financial Advisers (like Accountants for the Accounting Industry, Medicos for the Medical Industry, Lawyers for the Legal Industry etc.) we have no hope. That’s not being pessimistic, it’s being realistic. Financial Services have never had Adviser representation at regulation level. Every other stakeholder has had direct influence at Govt. level over the last 30 years – Banks, Super Funds, Insurers, APRA, ASIC, Politicians, everyone bar financial advisers. We have been deliberately excluded at every level and at every reform. We have no voice and until we do, we will continue to be at the mercy of the controllers, like puppets in a long running Punch and Judy show.
The frustrating thing about this QAR is that there are many highly experienced, ethical, professional high quality well qualified individuals in the adviser space that would be invaluable to help shape the landscape going forward, but sadly the powers that wield control do not consider or wish to include them in this. I wonder why that could be???
It comes down to money! The previous government received money from product manufacturers, the new government from Industry Super not advisers. Therefore who are they going to pander to? We have 2 behemoths we have to contend with, the other professions don’t, apart from Doctors who have to deal with Big Pharma!