Speaking on a recent ifa podcast, FMD financial adviser Nicola Beswick weighed in on the ongoing debate surrounding the accessibility and affordability of financial advice.
The adviser, who is also the chair of the Pro Bono Financial Advice Network, said financial advice should be viewed as a service that offers different levels of expertise, just like the legal profession.
Ms Beswick explained that while some clients may only require basic advice, comparable to one-off legal services such as conveyancing, others may require more intricate advice akin to the services provided by a family lawyer. In the financial advice industry, the latter could mean more complex situational reviews or interactions.
“If we look at the legal profession as an example, we have people that need lawyers at different points in their lives. Whether that’s just for one-off type of situational things, like conveyancing or something really quite basic like that, compared to someone … I’ll use a family lawyer as an example where that’s a little bit more complicated. Then up to another level again, where you’re dealing at more complex interactions and transactions.
“I think financial advice is very similar in that regard,” Ms Beswick said.
Ms Beswick opined that while complex advice and situational reviews may be considered a luxury, basic advice and direction should be accessible to everyone, regardless of their financial situation.
But she emphasised that not all advice should be offered at no cost, as this could destroy the profession.
“I think for me, certainly not all advice should be at no cost, because then otherwise that’s going to completely destroy us as a profession and what a lot of people have worked towards. But then there’s also that need to be able to help people that can’t afford it but need to have them pointed in the right direction,” Ms Beswick said.
The Pro Bono Financial Advice Network connects financial advisers to Australians in times of financial hardship, specifically personal health crises.
Initially a lawyer, Ms Beswick made the major career change, choosing to transition to financial advice after her father was diagnosed with multiple sclerosis.
“He was really, really fortunate to have an income protection policy in place. Having that for the next 10 years of his life meant that we, as his family, were OK,” she recounted.
Hear more from Ms Beswick here.
Best idea I have heard for years
Lawyers are all still qualified, the calls for financial advice to be delivered by unqualified people needs to stop.
Totally agree……..Lawyers are still qualified Professionals irrespective of what area of law they then go on to specialize in.
That is you must satisfy 3 requirements:
1. You’ve completed your Bachelor of Laws or equivalent course.
2. You’ve completed a Practical Legal Training (PLT) program, which awards you a Graduate Diploma of Legal Practice.
3. You’re a fit and proper person.
The calls for financial advice to be delivered by unqualified people needs to stop.