In a new opinion piece published on ifa, Synchron director Don Trapnell said the industry will “start to turn the corner” this year due to a few reasons, despite adviser numbers recently tipped to drop to 15,000.
“First of all, financial advice is regaining community respect,” Mr Trapnell wrote.
“The public and the press are recognising the value that advisers deliver, especially in times of trouble, such as the past two years of the COVID-19 pandemic. We are therefore again becoming an industry people want to join.”
Mr Trapnell also noted government’s consultation with the industry on different issues, including the release of the Education Standards for Financial Advisers policy paper last month.
“This is a great idea because while I do think some people consider studying for a career in banking and finance when they finish their VCE or HSC, I still don’t think many 18-year-olds wake up and say, ‘I think I’ll become a financial adviser,’” he wrote.
“It’s a career that often develops after people have had experience in, and qualified for, another usually related, field. If the fields of study were broadened, it might make the educational transition for these people a little easier.”
Read the full opinion piece here.
It comes after The Advisers Association (TAA) chief executive Neil Macdonald said the advice industry has reason to be “optimistic” ahead of this year’s federal election on the latest episode of the ifa Show.
“I’m optimistic, particularly because I think there is a recognition on both sides of the government that there needs to be changes, and the pendulum’s probably swung a little bit too far,” Mr Macdonald said.
“I think they’re looking for the associations and advisers to give them some constructive feedback on what needs to change and how.”
There is no way that I would recommend financial advice as a career to someone.
Who in their right mind would want to spend the best years of their life and career working with such uncertainty? There are so many other better opportunities elsewhere.
There is a reason adviser numbers have fallen, and will continue falling.
The compliance environment has raised the cost to serve to prohibitive levels, while the risk has made it unattractive to serve.
HNW, UHNW, and Wholesale is all that’s left. Middle market and Risk are gone. The base and middle of the ‘customer segment’ pyramid cannot be served. They’re probably hoping super funds will pick up these segments using a combo of fintech, call centre, and some advice.
Highly convenient the Royal Commission wiped out the self-employed space but left vertical integration untouched. Personally have no interest working as an adviser for an industry fund. Tried once, never again.
Disclosure: I have 15 years, CFP, non-related postgrad, and completed FASEA exam/ethics subject.
and this is how it should be. There is absolutely nothing wrong with mass market being served by super funds, fintech, call centre and some FAQ PDF’s.
That statement would be fine if a level playing field existing. It doesnt. The compare the pair adverts (by way of example) are an abomination. If I made statements like that, I would lose my licence to practice.
Suure that’s how it should be. It’s a 3 trillion dollar nest egg. All those extra layers of management are there to look after YOUR best interests.
Perhaps the Government (of any persuasion) would rather a less informed citizenry. The middle class proactively optimising tax-effective super and maximising social security (courtesy of advice) is not good for expense side of the Federal Budget. Particularly when the income side is hit with lower working age ratios and an end to the China infrastructure boom!
The industry is not for the faint hearted.
If you think Hume and crew have advisers future as their best interest then good luck.
I don’t recommend anyone to join this industry, compliance burden is too much to live a happy life
Not if you run a smart business.
there are so many more valueable, better, risk adjusted ways to make $1m+ a year! Why bother doing it as an adviser.
Young people would be mad to enter this environment which has major regulation changes every few years. Industry fees and compliance costs continuously go up and revenue decreases thanks to the likes of LIF and other time consuming compliance changes, not to mention grandfathered remuneration which is no longer allowed! How many times does an adviser need to demonstrate that the advice meets the needs of the client and fees are disclosed appropriately? FSG, TOE, SOA, TMD, Product fee setup authorities, FDS and Opt-Ins — Now super funds are being tasked with making sure fees are appropriate despite all these formal documents and multiple client acknowledgements? What will be next?
Career advice to people wanting to become an adviser? Look elsewhere!
The industry will turn a corner in 2022. It will turn straight into oncoming traffic. The Adviser agenda is being delivered by those who have no interest in its success.
Product providers have eliminated much of their competition and private Financial Planners are wrapped up in red tape – leaving product providers in a great position to deliver affordable advice. Turn a corner – or just allow the reduced numbers of Financial Planners to stay where they now are?
Dreaming !!!!
It’s a bit early for optimism. In the last 7 months, we have had a massive increase in opt-in/fds red-tape; dangerous, retrograde changes to income protection policies, cumbersome new DDO red-tape and a second letter from ASIC/APRA threatening super funds in an effort to make it harder for financial advisers to have fees paid via super. Things are getting worse, not better. Ok the rhetoric from politicians, government bureaucrats and journalists has improved somewhat. But rhetoric does not help me in my business. Rhetoric will not stop me jacking up my fees and parting ways with smaller clients who value my services. Rhetoric will not stop me cutting life insurance advice. Rhetoric will not stop licensee auditors putting advisers through hell every year. Rhetoric will not stop the flow of advisers out the door. Until the rhetoric turns into meaningful legislation and regulatory guides, no-one in the industry should be celebrating a ‘turning of the corner’ or selling the profession to unsuspecting potential new entrants who are blissfully unaware of how impossible it is to run a profitable financial advice business with the current regulatory and legislative settings.
that’s right – the risk / return is not there. is why its time to leave this profession / industry. i found greener pastures.,
The pendulum swinging ‘too far’ has been used consistently since starting 9 years ago in this industry. Closely followed by ‘it can’t swing any further in this direction’. Well, the pendulum probably detached itself many years ago and isn’t subjected to gravity.
It is fanciful to think this is the case. Whilst ASIC , and their socialist tendencies, are in charge, this industry is to be avoided.
Any person who enters this industry/profession with the existing compliance framework clearly does not understand risk/return. On that basis, they shouldn’t be an adviser in any event.
It’s a sad moment of reflection of what has happened to our industry that many advisers will share your assessment of the risk / return scenario.
Sad – but entirely true.