In the latest episode of the ifa Show, Lifespan Financial Planning CEO Eugene Ardino said the industry will see “enormous attrition” as a result of FASEA.
“Sending a group of advisers who have been doing their job unblemished for up to 20 years back to school … I don’t know if that is a solution,” he said.
“The industry will lose a lot of high quality advisers. It will lose some low quality ones as well. I think most advisers should be able to get through the exam. I think the major issue will be all of the studying.
“Let’s face it, this is time away from your family, your children. Grandchildren in the case of some advisers.”
The chief executive also questioned the government’s success at consulting with the financial advice industry over the years. Particularly when it comes to the Life Insurance Framework.
“It comes down to making it simple enough to comply with it easily but also simple enough so that the disclose allows clients to understand what you’re talking about,” Mr Ardino said.
The CEO said the phasing out of life insurance commissions will result in less insurance being bought.
“We wrote a 40-page submission explaining that three years ago,” he said. “Rice Warner estimated Australia has an underinsurance problem of around $2 trillion.”
“They made that estimate four years ago.
“I think in the absence of any systemic failure and incidence of consumers being hurt by bad insurance advice, I would say that the underinsurance problem is something there should be more emphasis on.”
Listen to the full interview now.
36 Years, I wont leave, but will hand in my “Badge and Gun” and oversee and manage the next phase of the expansion of my business
Leaving -I have 3 degrees (incl. FASEA ‘approved’), two post grad professional designations on top, teach FP and have 15 years experience. Last night I made the decision to transition out of advice (over next 6-12 months) and I have woken up today with the biggest weight off my shoulders. My decision wasn’t based on FASEA alone (I only have the bare minimum to do). It’s everything. FASEA, TPB, ASIC, Treasury, ATO, Labor Party, ISA, Choice, FairFax and everyone else that is out to ‘get’ hardworking advisers. All of this is not worth the personal risk and stress that comes with being an Adviser. I would never recommend this profession for a school leaver or career changer. Luckily, I am still in my 30’s and I have time to start again.
Dear Leaving….you’re just depressed, weary & battled scarred. Hang in there buddy. It will get easier, given your experience and qualifications. I suggest you put your head down and turn off from reading this rubbish for a month.
Good decision Leaving, it’s simply not worth t he stress anymore. If you have been considered to have given the “wrong” advice by ASIC or whoever, you get slaughtered.
The risk is too great for the return now.
Can an architect degree make you a brain surgeon?
Can an accounting degree make you an engineer?
Can botany degree make you a kidney specialist?
Get the damn Degree in Financial Planning and be a Financial Adviser!
Only when you study with a formal degree in the relevant field you can be a specialist in the same field.
Holding a 4 months RG 146 Certificate in FP and bragging about being fully educated and handling 100s and 1000s of hard earned money of our valued clients simply doesn’t match. Degree in the relevant field is degree.
Who cares if a lot of uneducated bunch leaves??
This will only make the industry better!!
The funny thing is, you don’t need to do any study to become a Politician.
That’s the thing about barriers to entry… people with options opt to do something else.
Does anyone know what Tim and Claire Mackay stand on these issues ? Shouldn’t we be getting their approval or confirmation ?
Hi Everyone,
After it is all done and dusted and we are all pristinely qualified with grad dip fin plan or masters, and the exam we need a new designation, relevant provider is so dull, so I have a suggestion (mine is a little more dull than the person who was going to bring their falcon to a conference but hey):
[b]FKFP[/b][b][/b] – Fellow, King Financial Planner
FQFP – Fellow, Queen Bee Financial Planner
I want some sort of recognition after all this.
[quote=#lumpy][quote=Anon]I am happy with FASEA. I only have 1 subject and the exam to do. I am tired of being given the same title over the last 15 years as someone far less qualified. Bring it on. Professionalise or leave.[/quote]
What Anon like a Doctor? So what you’re saying is GP’s aren’t qualified as they are called Doctors just the same as Specialists who are more qualified…idiot. wankers like you are the problem – saying FASEA is great only proves that[/quote][quote=#lumpy][quote=Anon]I am happy with FASEA. I only have 1 subject and the exam to do. I am tired of being given the same title over the last 15 years as someone far less qualified. Bring it on. Professionalise or leave.[/quote]
What Anon like a Doctor? So what you’re saying is GP’s aren’t qualified as they are called Doctors just the same as Specialists who are more qualified…idiot. wankers like you are the problem – saying FASEA is great only proves that[/quote]
Sorry you would’t be a doctor. You could be their PA though. You are obviuosly unhappy with the professionalisation of the industry. Either embrace it or go a sell cars or something. This cake is baked.
I agree that the FP industry needs to become a profession however, a book can only teach you so much.
How many times have you said to a new grad now your leaning begins.
FASEA is crap as it does not consider past working experience is worth anything.
It will be very interesting to see what the industry is like after 2024 and who is left.
[quote=Anon]I am happy with FASEA. I only have 1 subject and the exam to do. I am tired of being given the same title over the last 15 years as someone far less qualified. Bring it on. Professionalise or leave.[/quote]
What Anon like a Doctor? So what you’re saying is GP’s aren’t qualified as they are called Doctors just the same as Specialists who are more qualified…idiot. wankers like you are the problem – saying FASEA is great only proves that
i think a lot of people are in the position of “Leaving” at least you have the option think about all those who bought a practice in the last few years i really feel for them and their families
it’s ridiculous to say that 10 + years experience is not equal to a bachelors degree. it most certainly is.
OK, we are supposed to be advisers – so let’s look at the maths of a hypothetical adviser 55 and over – needing 6 units – you might have a non”relevant degree” like economics – whatever. The academic component over the next 5 years is at least a 200k exercise. I hear you say what. Premise – 6 units of study as minimum and fees for the course. 6 x$3.2k (cost per unit) + a full year away from the coalface (opportunity cost ) salary of $150k pa. so without trying you are in for 170K+ and allowing for project escalation, slippage, call it what you will – its a $200k exercise. That’s without having to hire additional resources to cover your absence whilst your forgoing salary. There is simply no return on investment.
I was speaking to a Westpac adviser the other day, who at age 35, with over a decade’s experience and a Masters in Financial Planning, is chucking it in and looking for a new career. Just over all the changes and rubbish in the industry over the past few years. I can’t blame him.
Well, it is 46 years for me. Sorry fellas, I have lost my passon these last 2 – 3 years. Sad way to leave an industry which has done so much for me!
I have 3 degrees (incl. FASEA ‘approved’), two post grad professional designations on top, teach FP and have 15 years experience. Last night I made the decision to transition out of advice (over next 6-12 months) and I have woken up today with the biggest weight off my shoulders. My decision wasn’t based on FASEA alone (I only have the bare minimum to do). It’s everything. FASEA, TPB, ASIC, Treasury, ATO, Labor Party, ISA, Choice, FairFax and everyone else that is out to ‘get’ hardworking advisers. All of this is not worth the personal risk and stress that comes with being an Adviser. I would never recommend this profession for a school leaver or career changer. Luckily, I am still in my 30’s and I have time to start again.
It make you wonder with all the advice that has been given over the last say 40 years up today must be really bad advice because a vast majority of us don’t meet the education requirements. For those who do upgrade I bet you 100% that you will relate to your client exactly the same, because they don’t care how much you know but how much you care. Next you will have to have a degree just to get married……..
I am happy with FASEA. I only have 1 subject and the exam to do. I am tired of being given the same title over the last 15 years as someone far less qualified. Bring it on. Professionalise or leave.
Forty years of advising experience for me too. But on January 1, 2024, I know nothing. But a twenty something year old with a relevant degree then has enough knowledge and life experience to take over from me, thank goodness.
If we are quite honest about the situation, given LIF, FASEA and the RC combined, we are looking down the barrel of a mass exodus of advisers. We are 5 months down the track since the FASEA ruling regarding new advisers was brought in and we still have no guidance on how to operate within the professional year legislation and no further information available to prepare for the Exam which is supposed to be available from July. We are also facing a situation where grandfathered books are being valued at Nil and, with all these additional training and compliance requirements, we have no advisers available to service these clients. Risk advisers will soon become a thing of the past and where will that leave the massive under-insurance problem?
FASEA has little to do with education. It is a regulatory instrument whose purpose is the culling of the majority of current advisers.
35 years for me, have CFP, FCH(FP), SMSF SAA, B.Com, ADFP….but not qualified enough so back to school at some point…when the greedy Prof’s have finished writing their books and getting them published….which is the reason I’m sure the courses are not yet available…
It’s a fair call. Plenty of good advisers are now being forced back to school. Unfortunately, the responsibility lies with the ineffectiveness of the professional associations who for 20 years have been unable to advocate for an alternative model. If these issues were dealt with properly when FSR when was introduced we wouldn’t be here today. You will always pay a hefty price over the longer term when compromises are made to cut-corners.
Well said Wayne, I have been in the industry 42 years and would love to see all Politicians go back to University to retain their positions as MP’s ! Sadly FASEA will not actually achieve anything other than driving people out of the industry. Family time with our partner’s , children and grandchildren is more important than studying.
Up to 20 years? I’ve been at it for 40 years and there are advisers still working that were there when I started!