Trying to change the past has left the future of advice “at the precipice”, according to Connect Financial Service Brokers CEO Paul Tynan.
Regulation and “constant legislative tinkering” – as well as an overabundance of regulators – has created an unnecessary burden on advisers, while retrospective legislation has allowed institutions like AMP to arbitrarily write down the value of advisers’ businesses.
Combined with the burden of new education standards and adviser numbers are at a record low.
“It’s for this reason that politicians and stakeholders must ensure that the decisions of the past that have brought about this scenario are not repeated or compounded going forward,” Mr Tynan said.
“When looking back at history, the litany of disasters has quite literally been horrendous with most catastrophic being retrospectivity. Basically, a misguided belief that arbitrarily changing the past will improve the present and secure the future.”
To repair the damage, Mr Tynan believes the industry should embrace fintech to drive efficiencies and benefit clients, focus on creating new career pathways into financial advice, and that efforts should be made to reduce the number of SOAs advisers have to issue.
“A combined effort and joint approach by government can halt the demise of financial services and the advice sector,” Mr Tynan said.
“However, action is needed now with a united effort and joint approach that can create a viable future for the industry and provide affordable advice for consumers. A good start would be a bipartisan working group not comprised of the usual retired judges, lawyers, vocal interest groups and individuals who have no practical experience running an advice business or face-to-face interaction with clients.”
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