In a statement released on Wednesday, AFA national president Marc Bineham said advisers were here to help their clients in the short and long term, which would involve detailed conversations in the coming weeks around how to take advantage of new payments offered due to the COVID-19 crisis.
“People who lose their jobs, have to close their businesses, or whose income and investments are taking a hit because of the sharemarket volatility associated with this pandemic are obviously extremely worried, and rightly so,” Mr Bineham said.
“But we are here to help our clients through this. In the short term that is likely to be about helping them understand the new options put forward by the government.
“The financial advice community has helped thousands of people through very serious financial crises in the past, including the GFC, and together we can and we will help people get through these troubled times again.”
AFA chief executive Philip Kewin particularly welcomed the introduction of the government’s JobKeeper payment this week, which offered businesses that had been impacted by the crisis up to $1,500 per fortnight over six months for each employee they retained.
Mr Kewin said the payments were important to keep businesses afloat and employees in jobs, but also to boost mental health by keeping employees feeling connected to a regular routine.
“Importantly, it helps to retain the employer-employee relationship, which is vital not only to retain future jobs but also to maintain a sense of connectivity and community in a time of social isolation,” he said.
Positive is always better Perhaps you could spend your free time exploring software that allows you to assist clients with revised plans and not fall foul of the regulators.
I’m sure we would all do a better job for our clients if we were all unlicensed advisers and were able to focus on our clients needs & wants, No big documents full of rubbish. Advice could be done in a well laid out email or personalised video outlining our strategy & thinking.
Maybe the FPA should be lobbying ASIC about the restrictive nature of legislation in terms of helping people.
This is a logical idea, in theory. However, as all advisers know only too well, you can’t offer advice to someone unless it’s A. In writing, B. Based on a bunch of information you have to collect before you offer the advice. So, we either can’t help, present them with a bill they probably can’t afford and won’t pay or we go broke trying to help people. Well done, regulators. How’s that consumer protection working out for you?
Let’s stop the negativity. My clients are calling with a range of questions for assistance – financial planning and otherwise. I have been able to negotiate premium waivers on a case by case request via AMP….YES….AMP, and other insurers for numerous clients thus far. I am in contact with pension clients and providing emotional support and reassurance of their position (I always retain 2 years of payments in cash in their portfolios for this very reason!)
This is the time for advice industry to show the regulators our true value in ‘unprecedented’ times. So let’s be positive, and make our stand and with any luck, the regulators will take note of our true worth. If they don’t, that’s fine also.
My clients will still win and understand the value of our relationship.
Yep, that’s the right professional attitude to have Frank and most would agree. However see the comment above from Wayne which sets out how difficult it is to actually do the work that needs to be done. New SOA required where there is a significant change to the clients Objectives, Situation or Needs.
Well this wasn’t thought out in any critical way… Great you had an emotional support chat? Please document that in a statement of advice… You can’t recommend any changes as well with… You guessed it, a statement of advice!… These are all major financial changes happening to people, not ROA worthy, whatsoever.
Positive attitudes were killed years ago with over regulation. If you are providing advice in this environment you aren’t doing it legally I can tell you that and DEFINITELY not to new clients.
The AFA are delusional. Sadly financial advisers are not really able to “easily” help clients. The industry is not set up like say a doctor to provide a short quick consultations and make personal recommendations. Any “detailed conversations” with a new client is personal advice and will need fact finding and a lengthy ‘statement of advice’. For exisiting clients it can be assumed that if they have lost their job, business or investment income that would be a significant change in circumstances, which requires the adviser to redo the fact find and again issue a lengthy ‘statement of advice’. This is not a 10 min consultation. It’s a longer and expensive process, that is not general advice. People will be in need of expert help and guidance for their personal situation, are they’re not exactly in a position now to pay for it. Regulation is protecting consumers from poor advice, however there is cost, and this is the cost.
I could not have said it much better than this! How do we (when our income is also at risk) provide advice that involves hours of research, preparing SOA’s etc. In the “old” days there was a cross subsidy to an extent…this allowed us to do this work. Not anymore….
it’s a shame you went with “anonymous”…I was hoping to put you forward as industry spokesperson as this sums up our plight beautifully
Ha! I did post my name, but it didn’t work! Ashleigh Swayn
Ha! I typed it in.
accountants and financial advisers, and SMSF specialists , to name a few will be helping many people.
No wonder we get crushed. What weak comments from the AFA.
The issue should be, now at a time of absolute chaos when people need advice they are having access to advice pulled out from underneath them. AMP bringing forward removal of grandfathered commissions, how will those clients feel when told that the fee for assistance is $xxx! Experience tells me they won’t like it. The role of the adviser is as a sounding board, insurance policy, someone always available to ask questions of who knows my circumstances. That’s why on going service agreements were in place. Lawyers and accountants do work based on specific issues. We provide counsel. It can’t be itemised.
2020 will be a tough year for previously advised clients now on their own.
Good luck with the institutions’ call centres!
Perhaps they should call their local MP for pro bono advice.
Well said Wayne and it’s a pity that AFA, FPA, ASIC and fringing anybody else can’t see the forest for the trees. We are doing BID for the clients but again they just can’t see it. Worst time for AMP to turn off GF comms 15 May when should be extended to legislative date 31 Dec as they will need our services more than ever.
Advisers can play a valuable role helping their existing clients. But they cannot help anyone else. Thanks to the over complicated regulation of financial advice, it is impossible to cost effectively advise a new client who is in financial difficulty.
I’m sorry what’s hard to understand here? PLUS no one has money to afford the time or advice?…
IFA really is going downhill for reporting