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.”
Great article, however the despots will do anything and everything to maintain their power, including destroying as many advisers as it takes.
FARSA – with the ambiguous standards, bizarre interpretation of the wording used and idiotic exam that achieves nothing.
ASIC deliberate double standard on advice particularly in regards to the intra advice BS.
Advice needs new recruits – how can anyone ethically recommend planning as a career path ??????
Such a true Comment.
ASIC knew about Banks & AMP Fees for NO Service since 2010 or earlier. And ASIC did Sweet FA about it.
Now post RC and being shown to be toothless to the big Insto’s ASIC are on the war path to try to fix their past wrongs.
Problem is most of the Bank Insto’s have run away and AMP will be lucky to survive.
So ASIC are now just crushing the Real Advisers with FARSEA, BS REGS and mad 10 year look back actions and threats.
[b]Shut the gate ASIC, the Insto horse has well and truly bolted. [/b][b][/b]
Please pull your Canberra Bubble Bureaucratic Heads out of your Butts, out of the highly paid consultants Butts and speak to real world Advisers. We know the daily BS REGS grind, we know the clients and Real World Adviser are the only ones that can help fix it.