In a statement today, former president of the Association of Financial Advisers (AFA) and current chairman of financial service training company Mentor Education Jim Taggart said the Australian financial advice sector is regarded as a global leader in most countries.
“Most countries [are] acknowledging that in the near future, they too will be required to adopt Australian advances in education, training, compliance, technology, disclosure, professional development and related standards,” Mr Taggart said.
However, compared to markets in Asia, the Australian financial advice sector places less importance on building interpersonal relationships – a weakness that will impact the sector’s resilience, according to Mr Taggart.
“Unfortunately, what has been overlooked by many in Australian financial services is the importance of interpersonal relationships – an area in which Asian cultures excel,” he said.
“The most important asset in any business is value of the relationships developed by the planner over time. Whether they be with clients, suppliers, COIs, alliance partners, staff, etc.
“To put it in business terms, it’s called social or relationship capital and it’s the first all-important building block Asian cultures demand be in place before two people or companies engage in a commercial undertaking.
“P2P relationships in financial planning [are like] the foundations of a tall city skyscraper reaching to the clouds. The deeper and stronger the foundations, the stronger and more resilient will be the building.”
