Rising to speak in support of Labor’s failed attempt to disallow the government’s FOFA amendments last week, Senator Whish-Wilson said independent financial planners had left an impression on him during the FOFA amendment consultations.
“Speak to the independent financial planners – the industry they want to see in 10 or 20 years’ time of small independent advisers in this country,” said Senator Whish-Wilson.
“I have met a lot of them in this inquiry. They are good people and they do a good job. But we are never going to transform this industry if we do not have a tough set of regulations that lay down the law.”
Speaking to ifa in response to Senator Whish-Wilson’s comments, Boutique Financial Planners president Wayne Roggero said legislation plays a huge role in the future of independent advisers.
“Unless there is a significant change in legislation, the large end of town has the capacity of buying out the smaller practices or the independently-owned practices,” said Mr Roggero.
“What we have seen over the last 10 years is a lot of money being spent by the big end of town to basically buy the selling capacity,” said Mr Roggero.
Independent Financial Advisers Association of Australia (IFAAA) president Daniel Brammall also told ifa there will definitely be more independents in the future.
“We are approached by financial planners every week who are sick of the sales culture and feel like they’re not doing right by the client,” said Mr Brammall.
“Their employer wants them to make sales of product whereas they – and their client – wants impartial advice.”
I agree having worked within the banking advice for 3 years ( about 100 years too long) where all it was focussed on was SALES. I then spent 6 to 7 years in private industry where I was able to really help my clients – including one elderly lady who was a millionaire that I could not help with the bank but could with my private group. In my last 5 to 6 months I worked for an AMP adviser (basically back in bank environment except perhaps worse. I left in disgust at what they were charging clients for basically none existent advice.
In the 10 years prior (as a Result of doing an MBA) I was an executive director with two multinationals running Australian part of the businesses while also doing International work. I had been working an average 60 to 80 hours a week and wanted a better lifestyle !
Beware of little-green-men with lollies
Roggero it is disconcerting that you are supporting more red tape to support your value proposition. There is also a risk of oversimplification of the argument. The reality is that a significant proportion of advisers advice is linked to fund management – which they either do themselves or outsource. What we need to put on the agenda is a debate on how funds and investment risk are being managed. Red tape will not enhance performance or manage risk. And to separate advice from the investment recommendations makes absolutely no sense unless the adviser is providing strategic advice only. Those that provide strategic advice alone should get on with it and stop preaching to those involved in investment management.