Speaking exclusively to ifa, RSM Australia’s national head of financial services, Rod Edwards, noted a key FASEA deadline coming up on 31 December.
He said young advisers can potentially be locked out of the industry or face doing a new full degree if they’re not licensed by then.
On the other end of the spectrum, Mr Edwards predicted an exodus of advisers who will decide not to remain from their deadline of January 2024.
“You’ve got a lack of supply coming from the bottom, and a mass exodus from the top,” he said.
“I think one would argue that does look like a perfect storm to me, and I don’t know whether FASEA board has considered that fully given what they’ve released so far.”
Mr Edwards cited the UK example with their Retail Distribution Review staged between 2006 and 2013, whereby they had a similar education qualification standard that they put in place with no grandfathering.
He said it resulted in an exodus from the industry from 41,000 licensed advisers down to a minimum of 23,000 advisers.
“That created a massive concentration in the market. There was up to 19 per cent of advice books where clients were asked to leave the advice businesses because they couldn’t afford to have them,” Mr Edwards said.
“So that created a huge gap where if you didn’t have £250-plus invested, the advice industry couldn’t accept you as a client.
“We’re about to have a situation where we’re going to have a mass exodus I believe in 2024, or sometime before then when these new FASEA requirements kick in. If we had that same situation, then one would expect a similar exodus from the industry.”
Fasea is a joke. The FPA is pathetic.
This industry is a complete embarrassment.
I left over 2 years ago. I’m unlicensed, still advising and I stick my middle finger up at all of you baffoons who have stuck their snouts in the trough and are feeding on and taking advantage of compliance red tape. I’ve had enough of your circus and hoop jumping. You can take your regime and shove it.
All of my clients are super happy not receiving these ridiculous 50 page soa’s that none of them read or wanted. All of them were sat down and explained the ridiculous compliance regime and love the verbal advice. Love the hand holding without the huge cost of compliance. I have my life back. Good advice for an awesome adviser like myself does t need compliance.
The water is fine. Sack the FPA, sack ASIC, sack your dealer group. Sack this industry.
Become a life coach focusing on financial matters. I laugh at this pathetic industry daily.
Goodnight financial planning industry, your a joke.
Seems like you are providing advice outside of the law. Seems like you are one of those ‘cowboys’ we hear about. Can’t stand the heat so stuff yous all mentality…you are the joke.
Your the fool Anon. Keep lining up with the other lemmings. I’m not breaking the law at all. Funny how you revert to the Cowboy accusation just because you think you know what your doing.
Keep charging your $4000 soa and implementing fee. Keep ripping off your clients. You and the industry won’t last long. Again, I laugh at you daily.
Curious to know why…
1. You visit this website regularly when you think the industry and everything to do it is a joke.
2. You laugh at others daily? This gets you off?
3. You aren’t willing to post your name. You are an awesome adviser after all.
So I’m curious how you give advice without breaking the law. If you can do it, please share more info as there are plenty of advisers out here wondering how to do it..
Or just become an accountant so you can break the law safe in the knowledge ASIC will never do anything.
You declare 100% the truth. Clients sign off they know they are not getting advice, which they are not. They are not being sold a product. They are not being put into anything they do not want.
It is simply educational, life coaching that encompasses all aspects and options on their finances. You don’t need a license to give general information. Wake up. Smell the roses. Let go of your ego, your clients and you will benefit.
Make a stand and get your life back. I did 2 years ago. Never broken the law and the clients love it. I can’t keep up with the referrals and people wanting the change. It’s hand holding with solid expertise and experience guiding them with their options and if they want how to do it by themselves.
Take your sceptic coat off and think about it. Your wasting money and time sticking with this industry. But please, don’t believe me. I need lemmings like you who must charge thousands and thousands to supply what I can do for a fraction of the price and the time.
At some point the whole life coaching and money coaching will also become regulated. There is already a certified money coach “accreditation” available, most likely for the benefit of clients who are receiving advice, general or not. If this is the path you have gone down, good for you and hopefully it works BUT what happens when a client acts on your advice, makes changes and it doesn’t work? Who do they go to, how is any dispute over a “misunderstanding” resolved? Even the Barefoot Investor is under scrutiny in the industry for recommending the balanced, cough cough Hostplus super fund..
Dont you worry that your ‘general’ advice will be replaced by AI? If you are only giving ‘general advice’ then what is stopping AI from doing this instead of you? Or are you more doing the behavioral coaching and educational stuff? I am currently studying life coaching for same reasons you have flagged and am curious.
Are you Scott Pape?
Does anyone else think that the powers that be has overlooked one big important factor? That being a stockmarket crash… Personally, after 20 years in the industry I believe there are so many stock market crashes a financial planner can mentally and physically go through and the clock is ticking. I worry about my clients money. I spend all my time educating and coaching clients about market down turns and market risks…. but there are only so many market downturns and the conversations that go with it that you can take.
Hand holding clients is exhausting work and any adviser that has guided clients safely through a 15% to 50% market meltdown will know what I’m talking about. They don’t teach that skill at University.
My point being…What’s it going to be like when the market drops 25% and advisers have to study, and or do extra courses, plus have the pressure of an exam…plus run a business, How many will say “enough”. FASEA was charged with determining the meaning of a “Degree”” not a very hard task in my book and they’re now making it harder just so that Financially broke Uni’s and groups like the FPA can suck some money from our corpses.
FASEA and adviser education will not be relevant by 2024. The tech already exists to make the regulation look completely absurd. Give me a teched up old and bold, and forget this crap.
Problem is, NO ONE is listening !!! FASEA & LIF will kill the risk advising business unless reversed. Our professional bodies are conflicted – afraid of upsetting their real masters and trying to retain their investment in useless education offerings. FPA has not made any noise since the Sam Henderson fiasco. The AFA is talking to a Minister with a short political future, regardless of who wins the election. ASIC is licking its wounds and struggling for relevance. Only the insurers are capable of intervention, and they have been imbued in recent years with bank-style short termism and probably think the life industry can survive on DIRECT SALES & GROUP, regardless of clear hints from the RC that General advice could be for the chop.
The AFA should be banging on doors telling insurers they cannot survive in the long term unless advisers can stay in business. Its Statutory Number 1 Fund 101 and its time for action or we will go the way of the UK !
BTW – does anyone think the AFAs little effort on sunrise this morning will bring in one new customer to its members. What an image – financial advice and a $500k Ferrari convertible. Give me strength !
yeah, but would you, yourself listen to anything either the AFA or FPA have to say. they are so stupid and hopeless beyond belief. everyone knows they are a joke
until they both shut down we have no hope. i know you think it can’t get worse than this, but believe you me, it will get even worse because we have these complete and utter morons representing the advisers
Simple solution given the wasted time so far in finalising any meaningful guidance — extend the timeline to at least account for the time lost so far and give advisers a fair go at completing study required. Alternatively, vote the bas$12ds out next election and they too can be unemployed.
come on they are a consultancy not a body. stop with the fear mongering!!!
Yes but a body with the power to stuff the life industry up for all time. Wake up! FASEA and FPA are both dangerous disasters run buy ‘bought and paid for’ academic try-hards.
Its too late when the ‘investment memory’ is lost. It will take a decade or so to bring new advisors online at a cruising altitude that makes a difference.
“investment memory” wtf is that?
Understanding investment cycles, failed products, tax schemes etc. to insure clients don’t suffer permanent losses on reworked products.
Its rare that you can be a decade into a career and have NFI about anything, which is the case for planners who started in the last decade. Next bear market will show many advisers are no better placed than their clients in dealing with it all.
What an absolute disgrace. All that experience lost and can never be replaced. Commonsense once again out the door!
So true… our clever politicians and uni sector are great examples of knee jerk decisions without understanding the unintended consequences. Goodluck to the many Australians who went be able to access affordable advice
Thank you for your realistic view on the world. Most advisers can see this on the horizon but the politicians and FASEA seem quite oblivious to what is going on around them…or are they? The banks have been recruiting degree qualified planners for a while now,and that has worker so well for them, but means they don’t care about FASEA deadlines. Once again it’s just the poor old self employed planners who have purchased a book and have a debt that will bear the brunt of this. Great work politicians on both sides for giving the banks what they want, and don’t forget ASIC’s underhand tactics in this as well. I will go and pop another valium and get on with looking after my clients while i can.
Dont worry , Bill shorten will look after his Industry fund mates having phone advisers that can do everything without the need to see a client or do a SOA ( Oh I forgot its general advice !!!) . Go on to the website and log on to your account and you get a 1 pager full of blah blah . Accept it and you other funds can be transfered over in a flick of the eye . Talk about misleading .Or become a new teacher and they have a pre populated form ready to go to their industry fund ( No SOA ROA advice needed their )but if you want to go elsewhere they need everything . No level playing field their !!!
Do not give in. I have completed 3 subjects thus far this year and am a sole practitioner it is not easy. My advice is to do 1 subject at a time set aside 1 day a week with the focus on the study do not make it a week end.
How do you know what you have completed is even Farcea approved? Not even they know that.