Advice sector being split into two camps
The range of challenges throughout 2018 has divided advisers into two very distinct groups, says an advice education provider.
According to Mentor Education Group managing director Mark Sinclair, the financial services sector has faced a tsunami of challenges, including the Hayne royal commission, FASEA and the Productivity Commission report.
Mr Sinclair said the challenges have left the advice sector in particular shell shocked and polarised into camps he describes as ‘receptors’ and ‘rejectors’.
“The ‘receptors’ have accepted the new compliance and education reality and are embracing the fourth industrial revolution, that by re-engineering their practices, adapting and applying new technologies, they can ride the crest of the wave to new, exciting commercial opportunities,” Dr Sinclair said.
“The ‘rejectors’, mainly comprise mature age and experienced advisers, that gallantly weathered storm after storm in the past, have decided this current regulatory environment is much too much and have chosen to retire and exit the industry before 2024.”
Dr Sinclair said that while 2018 will end with a sigh of relief there are still hurdles ahead for the many sectors that comprise professional advisory services – but none more so than financial advisers.
“The legacy of the royal commission and new education/professional development requirements will, over the long run, be positive for them (financial advisers) by creating a stronger environment which, over time, will result in improved transparency, governance and business growth/success.”
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