While discussing the topic of the accessibility of advice on a new episode of the ifa Show, Midwinter’s Steve Davison said it is very easy to get financial information “that borderlines advice these days” through channels like Instagram, TikTok and Reddit.
“To be frank, if we look at various surveys, the biggest go-to for advice is family and friends who will have a whole bunch of biases and experiences that won’t always be good or relevant to the person asking the question,” Mr Davison said.
“It feels like advisers have one hand tied behind their back… I think it’s bigger than just the regulators. And it’s great to see Treasury now taking a look at the affordability of advice as really accessibility of advice.
“I think it would be great to see what some of those findings are, and hopefully, they do start to face into improving productivity and accessibility of advice.”
Last month, financial services minister Jane Hume slammed an ASIC review into financial influencers as the equivalent to creating a nanny state.
During a standing committee meeting on economics last month, ASIC confirmed it is engaging with social media platforms and their moderators to understand how the financial services law applies to their activity.
According to the regulator’s research to date, the number of online finfluencers across platforms such as Facebook, Reddit, Instagram, YouTube and TikTok is clearly growing.
“Increased levels of retail investor participation and interest in investment is to be encouraged, but we want this to occur in an informed, safe and sustainable way. This contributes to market integrity and confidence for all investors,” the corporate regulator said.
Listen to the full ifa Show episode with Mr Davison here.
the ONLY way this can happen is to reverse the annual fee renewals under the ridiculous hayne2 legislation. Until that happens, advisers are cactus. The advisers tolerating the Hayne2 prison chains need to have a good look at themselves.
Advisers joined the licensees who subsidized their fees by owning product, IOOF continue to do this yet most advisers have moved across to them on the sale of another AFSL who found that ground to difficult. Advisers who do the best for their client need to remove any of these perceived conflicts and align with licensees who are not also owning product or get their own license and employ 4 or 5 staff to undertake the compliance , research , admin, and tech support the best licensees do
This moronic idea that encouraging people to “get involved” with their finances is flawed. This is what creates the disasters and terrible outcomes. These matters are not do it yourself activities. People need to be directed to suitably qualified and experienced advisors. We could all watch Youtube videos and do our own electrical or plumbing work, however we are unable to do as a licence is required and council permits do not permit activity beyond a simple level. We could all do home dentistry or practice quack medicine but we are encouraged to seek professional advice. The same should apply to finance. Get the do gooders, politicians, consumer groups and bureaucrats out and the end client will benefit. Continue with the idea financial literacy is good and finance is a do it yourself field and we’ll continue do the road to disaster.
Nice work Karl – agree.
I have said it before …..Money Coach!!! or slip on some flip flops and write a book!
If “finfluencers” are your competition, you’ve got the wrong business model.
That is not the point. Financial Planner have a lot of Regulation to protect retail (PEOPLE). What is the point of all this regulation on Financial Adviser – already the only ones having already taken steps to become a Financial Adviser (Licensed, registered, PI etc etc etc) if the protection just ain’t that important to protect retail (PEOPLE) as is endorsed by Jane Hume and the Liberal Party – our Federal Government?
You miss the point here.
This one will end up in the “too hard basket” for ASIC – just like Industry Superfunds, IFM, intrafund advice”, vertical integration etc etc.
Easier to slap well intentioned Advisers around and invoke the , “why not litigate” methodology.