Advisers who decide to “turn their backs” on the industry because of the new education requirements will be responsible for the “vacuum of expertise” and the thousands of consumers unable to access quality advice, Mentor Education has said.
In a statement, the financial services training company said the consequences of a dramatic and sudden reduction in financial planner numbers will impact tens of thousands of clients and hundreds of small business owners.
Mentor Education founder and managing director Dr Mark Sinclair said, “Far too many planners have decided that the regulatory requirement for academic qualifications is a ‘line in the sand’ and their cue to turn their backs on a career and advice practices that have many more productive years ahead.”
Dr Sinclair said there is a significant vacuum of expertise in the provision of quality financial advice to meet the pre- and post-retirement needs of senior Australians.
“At a time when there is an overwhelming and growing need by mature age and senior Australian consumers to address the complexity of financial issues and longevity risks in retirement, experienced financial planners are choosing to exit the industry,” he said.
Dr Sinclair pointed to the need for solutions to address sequencing risk and issues; how to stretch nest eggs, superannuation and investments in retirement; exit strategies for SMEs; maximising social security entitlements; assistance and guidance to avoid scams, frauds and financial abuse; strategies to bridge the financial longevity gap, and more.
“It simply makes no sense when there is both a growing consumer demand and market for the services of experienced planners – as well as practical and workable alternatives to selling an advice practice at fire sale prices,” Dr Sinclair said.
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