Dante De Gori, chief executive of the FPA, presented the body’s outlook in an address to a Melbourne event hosted by financial services communication specialists Pritchitt Partners.
The FPA’s forecast for financial planning is positive, but it does expect the profession to present a different face in the future.
Compliance needs and cost, education standards and reform, changes in the market such as banks leaving advice, and business evaluations are all ongoing challenges facing the sector, the FPA boss noted.
Transparency and labelling will become key, Mr De Gori said, with clients to know when they are receiving advice or being sold a product.
“Product providers and other gatekeepers in the value chain will be held accountable for their role in any failures that cause consumer detriment – proportional liability,” he said.
“Further, the nomenclature of ‘distribution’ will be dead, buried and cremated in financial planning – no more distribution departments and no more reference to financial planners as being a distributor of products. Financial planners will be seen as service providers to customers and policy holders of a product provider.
“There will be true specialisations, with financial planners being recognised as specialist in a number of both traditional areas like SMSF advice, aged care but also new and emerging areas.”
He anticipates fee models will become a mixture of fixed pricing and hourly rates, with the majority of fees paid directly from the client and or administration platforms.
“There will be no more ongoing fee arrangements as we know them today but there will be an invoice for services actually delivered rather than for services that are promised to be delivered,” Mr De Gori said.
“Single, self-licensed businesses will not be common and many will form co-ops with other self-licensed individuals for shared services, admin, reception, paraplanning, premises etc – very similar to the medical profession.
“There will also be the big advice businesses with wealth management – but equally there will be large professional financial planning firms that will offer a variety of professional services to their clients with no product selling.”
He added that there needs to be a better definition covering financial planners, advisers, intra-fund advisers, life insurance advisers and other financial services professionals providing advice.
Other challenges for the space, Mr De Gori said, include affordability and access of service, technology solutions in the planning process, the role of the licensee, consumer awareness, regulation, professional indemnity insurance and a single disciplinary system for the profession.
“Those who take the challenge and opportunities that are there will thrive and so too will the profession,” Mr De Gori said.
I can make prediction too. Here is mine – The FPA will be gone!
No longer acceptable to Financial Planners, is an industry association accepting money from product providers. Advisers would also like an Industry association that represents them, not some ideological BS, not an association which hangs Advisers out to dry when they need them most, not an association who who have zero political power.
“Single, self-licensed businesses will not be common and many will form co-ops with other self-licensed individuals for shared services, admin, reception, paraplanning, premises etc – very similar to the medical profession.
Sweet so can we churn and burn like they do in doctors surgeries
What has the FPA done differently in the past 10 years? Nothing! Just take take from members and instos, and run away when reporters come asking for interviews, oh yes, and throw everyone under a bus at any type of enquiry. If the FPA folded tomorrow, the whole industry would not miss a beat. They need to realise this. As a matter of fact if we didn’t require a professional body membership to be a member of the TPB which we have to do to get paid, the FPA would be up the creek.
It must be membership renewal time !!! They say something via an event . How about a face to face meeting withthe brotherhood who are paying you in melbourne ?
Dante needs to stand down immediately. His suggestion that ongoing fees should be replaced with one-off invoicing at the time of service shows he is completely out of touch with the advice community. If it was implemented, 80% plus of the advice community would be wiped out. Kenneth Hayne just completed a Royal Commission which became obsessed with our fees. No other profession has ever been subject to such a rigorous and public analysis of our fee structures and at the end, Hayne DID NOT recommend such a radical step like Dante has suggested. The ability to charge ongoing fees is the only way the vast majority of financial planners can stay in business due to the exorbitant costs of compliance and the high number on unbillable hours, which will only increase due to FASEA. If the head of our leading professional association doesn’t understand the basic economics of a financial planning firm, he must go immediately. This period of transition right now is a crucial period. We cannot afford to have a fool in charge of the FPA
[quote=GenX Planner ]Good to see Dante and his association mates once again NOT listening to his members and industry.. Advisers need a MFAA equivalent. [/quote][quote=GenX Planner ]Good to see Dante and his association mates once again NOT listening to his members and industry.. Advisers need a MFAA equivalent. [/quote]
totally true. choice came about with something idiotic again rubbishing mortgage brokers. Peter white from FBAA came out swinging saying, “choice does some great things for consumers” like ” rating vacuum cleaners and washing machines”, they should stick to what they know.
https://www.theadviser.com.au/breaking-news/39345-stick-to-what-you-know-associations-hit-back-at-choice
BOOM!
Dante puffing up his tyres again. Must be salary review time for him. Ho hum. I take a glance at the headline and go back to sleep.
[quote=anonymous]and let me guess, dante and fpa are going to lead the overhaul. bring back dazza i say, that was a great campaign.
until you stop accepting payments from product manufacturers you won’t be able to lead on anything.
why won’t you give up this drug. i’d rejoin if you did.[/quote][quote=anonymous]and let me guess, dante and fpa are going to lead the overhaul. bring back dazza i say, that was a great campaign.
until you stop accepting payments from product manufacturers you won’t be able to lead on anything.
why won’t you give up this drug. i’d rejoin if you did.[/quote]
I won’t rejoin the FPA even if Dazza gets released from rehab…nice one Dante. I can think of other ways to waste money rather than having the FPA muppets do it for me! Never again.
“There will be no more ongoing fee arrangements as we know them today but there will be an invoice for services actually delivered rather than for services that are promised to be delivered,” Mr De Gori said.
Says who you frkn moron… that business model doesn’t work in advisory and what is so wrong with a retainer model like any other professional services profession?!
Those who can, do. Those who can’t, preach.
Other crazy cystal ball gazing ideas Mr Magoo and his $400K members paid salary included; CEO’s of industry associations that get asked if taking 12 months to handle client complaints by the Royal Commission will tend to resign in the future. Industry associations also won’t be putting in submissions stacked with broke Uni academics (such as FASEA) calling for the meaning of a degree to be a Bachelor of Financial Planning for all. Industry associations in the future will also act solely for financial planners and Australians and not in the following order of firstly themselves, 2) large insto’s,3) product makers that give them the most members and 4) lastly financial planners…but planners and Australians. His last prediction in the future is that Treasury and policy makers might actually listen to them…but I doubt that.
How on earth has the fpa just made this sensational piece of news public, OMFG… we have been going through change for the last 6 years.
This is pure rehashing of old topics. Tell us something new IFA.
Dante and the FPA are so out of tune with not only members but the whole industry.
Bring on money coaching….
ha – here we go again – they cant stop can they..?
The FPA started all this shit in 2001 with FSR
Just remember this is the body that sided with Senior Management of CBA when they blamed our fellow brothers and sister individual financial planners,… as the root cause of their problems.. Has a single CEO been jailed…no yet we’re doing FASEA, we’re seeing more regulation and over regulation. The future will not change with the current management of the FPA still at the helm. What’s the point of doing study in that environment.
You can see how all the failed Lawyers (sorry Politicians) come up with this crap. Just call it as it is…. fewer planner = higher fees = fewer clients getting advice = most people being worse off. Can we live in reality and not some ideological fantasy world!
Yet the FPA will live in the 1980’s…. and sees it’s future as being in the pockets of large institutions.
Invoicing after each review, phone call or letter etc, that’s a total change to business practice and cash flow. If this is the way forward by FPA but the client still likes the current system–mayhem will result and loss of membership numbers for the FPA. Maybe member input will snuff this idea or a big move to a new association.
and let me guess, dante and fpa are going to lead the overhaul. bring back dazza i say, that was a great campaign.
until you stop accepting payments from product manufacturers you won’t be able to lead on anything.
why won’t you give up this drug. i’d rejoin if you did.
If advisers are charging clients directly from their bank accounts then why would they bother to do the training, compliance, SOA’s, adhere to the Best Interests Duty and all the other rubbish and associated costs which come with being called a financial adviser.
Why wouldnt we just call ourselves money coaches and provide advice like all the other people who operate in the wealth creation industry without any of these time wasting proceedures and costs. Accountants do this daily. Property spruikers get away with everything.
We could still give exactly the same advice and help people apply for the investment product/insurance/super policy as these will all be made available direct to the public after FASEA gets rid of 50% of advisers and product providers need another way to distribute their products.
Good to see Dante and his association mates once again NOT listening to his members and industry.. Advisers need a MFAA equivalent.