Speaking in a recent presentation, Adviser Ratings chief executive Angus Woods said the group had revised down its previous predictions around the number of advisers that would remain in the industry once the FASEA standards came fully into force.
“The run rate continues to be quite steady, so if we play that out as it is at the moment, we expect 12,000 advisers lost from the industry from its peak,” Mr Woods said.
He added that with pass rates coming down in the latest FASEA exam sessions, and advisers running out of time to take the exam with the bill to extend the compliance date currently stuck in Parliament, it was likely that significant numbers of advisers would exit the industry in the coming months.
“Those who are more confident tend to sit the exam first and that shows in other industries,” Mr Woods said.
“We are seeing bigger failure rates from re-sits of the exam which isn’t great, and that is going to be a cause for concern once the FASEA exam [bill] gets passed given the amount of advisers who will have to re-sit.”
Mr Woods said around 16,000 advisers still had to sit the FASEA exam, and this remaining cohort were older on average than those who had sat the exam and passed.
“There’s advisers who for 20 to 30 years haven’t sat an exam, some of them are reading about it on social media and that causes further anxiety for some advisers. So we will continue to see more advisers exit between now and 2021,” he said.
According to Adviser Ratings data, more than 60 advisers had left the industry in the month to 11 June alone, although a large number of these had been due to the licence suspension of dealer group MyPlanner.
A further 36 switched licensees during the month, with 11 joining Melbourne dealer group Avana, four advisers joining Australian Advice Network and three joining Centrepoint Alliance’s group, Alliance Wealth.
Thanks for fixing that figure 😉
Aren’t Adviser Ratings predicting there will be 16k advisers remaining by Dec 2021? I don’t think that figure of 10k is correct
Hurrah! Time to kiss all the dopey old lifeys goodbye! They were nothing but charming snake oil salesmen anyway. Without the comms the wouldn’t have spat on the clients.
Hahaha!!! sucked in to all the insurers and FSC that lobbied hard to get LIF in and rob the poor adviser blind. Seems the poor adviser has had enough of victimization by the big end of town and leaving in droves. Not exactly what the big end of town had imagined. they just thought advisers would suck it up like they have been doing for the past decade with all the other rubbish thrown at them. Now the insurers are slowly bleeding to death and there’s no way they can recover without a large adviser force to SELL their products to all the mum and dads out there that need insurance. YES you must SELL it otherwise nobody will pay for something they can not see or feel. Looks like the government will need to find more billions$$$ to prop up the life insurance industry or throw it into Centrelink coffers. Well done to all those bright sparks that have created this gigantic mess.
Nobody will have to worry about clients best interests very shortly as no clients will be able to afford advice in the first place. Well done to all the dopey politicians and FSC stooges
What were the expectations? Advisers considered no better than used car salespersons, are now regulated and bound by possibly 4 entities…ASIC, Dealer Group, TPB and industry association!! What happens when instead of proactively looking after clients you spend all your time worrying about how to comply with 3….yes 3 or more codes of conduct including the FASEA CoE!!!!
They have made this too hard and common sense will tell you how this plays out as we are already seeing…and yes advice WILL NOT be for the common person…do we care? perhaps not…but the process involved for the ones who can afford advice still make it highly stressful, full of red tape and completely over regulated. I sadly feel that any good innovation just won’t happen now as who would invest into this rapidly shrinking stink fest
there will be 5 k tops. all others will become money coaches and provide coaching advice
Another fear-inducing stat generated by a company whose business model relies on monetising advisers’ data
All organisations in this industry monetise our data. These guys aren’t any different.
These guys are different because they conducted a dishonest media smear campaign against all advisers, then said “differentiate yourself by signing up to our service”. It’s a white collar protection racket.
Just more hangers on, but these guys have an agenda so be careful especially if you are on the ratings site. Just look at the ownership.
Why would anyone ever want to be an adviser. Especially when everyone else can give the same advice and charge the same fees as we do just without having to jump through all the hoops we have to.
A not to all advisers. Dont waste your time with FASEA or further training. ASIC have no problem with mortgage brokers recommending SMSF’s with no training or compliance. ASIC have no problem with real estate agents tieing someone to a 30 year investment with no training or compliance. ASIC have no problem with backpackers recommending Income Protection with no training or compliance. ASIC have no mproblem with stock brokers collecting commissions on life changing trades with only minimal training or compliance.
Basically, you have to be an idiot to be an adviser (unless you are dealing with the top 1%).
You can still provide retirement advice, investment advice, insurance advice, SMSF advice etc and help the client with the paperwork. Just dont be a registered adviser and dont call what you do financila advice. You will just have to bill the clients individually from their bank account instead of from their managed funds/super.
What you say sounds great. But can such people advise on specific shares, managed funds and insurance
Accountants, real estate agents, mortgage brokers, content writers, and product provider call centres advise on all these things. No, they aren’t qualified to do so, and no it’s not legal.
But it’s a moot point when ASIC chooses to ignore all these illegal and incompetent advice providers. ASIC’s primary focus is persecuting licensed advisers. They are not focused on protecting consumers.
Yes. Im being TOTALLY rediculous.
You cannot advise on these things legally. However ASIC has no problem with everyone else giving advice on these products other than qualified financial advisers. Just call yourself a Money Coach, charge the client directly and you can advise on whatever you wish. There are so so many people doing exactly this already.
It is obviously what ASIC and the regulators want (otherwise why would they make it almost impossible for advisers to exist). It will turn into a similar situation to building and there will be lots of phoenix companies when the “advice” given by all these unregulated and uninsured money coaches goes wrong. This was the inevitable result of all this over regulation, increased costs, increased training etc which makes it almost impossible to service anyone but the super wealthy.
The outcomes for the client will be far worse than of they went to a regulated and insured financial adviser, but ASIC and the government and the banks/super funds etc want to eliminate the adviser so this is going to be the only way to remain independent and service the majority of clients.
Don’t be utterly ridiculous. Your comments are not correct demonstrate a lack of regulatory knowledge. I suspect you will be one of those leaving.
The comments do actually demonstrate regulatory knowledge in relation to enforcement. Financial advice regulations are only enforced against licensed financial advisers. It doesn’t matter what the regulations are for all the unlicensed advice providers, because they aren’t enforced anyway.
You are right about one thing. You would have to be an idiot to remain in this line of work.