Two figures within the advice industry – Artemis Investments (NSW) director Philippa Hunt and Forte Asset Management founder and director Steve Prendeville – joined forces for the new initiative following recent conferences held by the Association of Independently Owned Financial Professionals (AIOFP) in Hobart and the Hunter Valley last year which Ms Hunt ran sessions at.
The two were “bowled over” by the responses and decided to team up as Ms Hunt has a background in organisational psychology as well as a successful career in financial advice, while Mr Prendeville is “often the last resort for advisers to sell their business who are desperate to get out of the industry” in his role.
“We are alarmed at the number of advisers exiting the industry with more likely to leave in 2022 and again 2026,” Ms Hunt told ifa.
“We are losing the experience and knowledge that sustains the industry.”
The survey also seeks to understand the toll that government and regulator reform has had on the sector, which Ms Hunt believes has not been handled well by either.
“In my 20 years of experience in this industry… I have never seen or experienced the haphazard onslaught of legislation that has so decimated and shattered the people in the industry,” Ms Hunt said.
“We are now dealing with the fallout of increasing costs of advice because of the compliance paperwork duplicating the processes that were already in place. Advice costs over $5,000 for a statement of advice and most advisers don’t charge that amount. It makes advice for ordinary Australians unsustainable for a small business. Mostly the high net worth clients will be left to afford comprehensive advice.
“The mental health and emotional wellbeing of advisers, their business and employers has been crashed over the impost of badly thought-out legislation, the pandemic, lockdowns and burnout.”
Ms Hunt and Mr Prendeville will look to get a screengrab of the situation that advisers face in 2022 given there has been no attainable way of understanding their currents needs so far this year.
The survey looks at the mental and emotional health of planners, as well as FASEA, LIF and the effects of both now. It is targeted to all financial advisers, including those in insurance and investment, as well as staff who work with and for advisers.
“When the results are in, data analysed and reported of this current point in time we hope to get a clearer picture of current state of mental health, emotional state, the effects of the most far-reaching legislation,” Ms Hunt said.
To complete the survey, click here.
If you are suffering from depression, anxiety or suicidal thoughts, or you’re worried about someone else and feel that urgent professional support is needed, contact your local doctor or one of the 24/7 crisis agencies below: Beyond Blue: 1300 22 4636 www.beyondblue.org.au Lifeline: 13 11 14 www.lifeline.org.au Suicide Call Back Service: 1300 659 467 www.suicidecallbackservice.org.au
Understanding and assisting clients along their life journey is a matter of time and emotional linking within their family or business unit which evolves with time , empathy and a deep working understanding of the persons traits .
How they think and feel whilst also understanding any cultural beliefs within their community .
This can only be captured with spending time with your client .
some things can not be documented , nor disclosed .
Whilst we have the legal obligations and also ethical as well I don’t necessarily believe that a new entrant in this profession can truly comprehend all that what is truly involved merely be passing and exam of being qualified .
I wish all the very best, however it seems that then profession is losing a pool of wealth in the coming year .
regards
For anything to happen, Treasury needs to know the issues and public cost.
Is anyone lobbying them ? When I tried last year, their preference was to leave things to us. Hello FPA …. time to step again.
The FPA has never stepped up. They are the epitome of “Fee for No Service”. The only reason why they are in business is because they have monopolised the CFP designation.
Thanks for this article,
I have just done the survey,
I can’t wait to see the results, but I am pretty sure that they will demonstrate that all professional financial planners are burnt out, exhausted, and looking for a change in life.
I find it incredibly ironical and downright hypocritical the same time that the very people constructing all the regulations about conflicts of interest, professionalism, getting the best outcomes for consumers are the very people committing the most heinous acts related to conflict-of-interest and corruption. Nothing else needs to be said.
Its all about Lawyers and how much money can they make
Government does not care.
No new entrants into FP and why would you, as soon as you register you are in the headlights of regulators and Lawyers all wanting to make as much money as they can……..
Clients are the ones missing out now……oh, well, the Government will just have to bail them out with Social Welfare, just borrow another Trillion dollars and we should be ok.
Thanks for your work on this Phillipa and Steve. This is a great initiative. I hope my survey responses are helpful. I will continue to support this sort of work, even though I have lost all hope that the Coalition care. In my view, they simply want us out the way to benefit their institutional backers who want to sell their products directly. I hope I am wrong, but the way I see it, the only path forward is to encourage our clients to keep voting against the incumbents until someone listens. Maybe 4 years in opposition will encourage the Coalition to reflect on the damage they have done and hear our cries for help. Who knows, maybe Labor will take advantage of the opportunity and become an unlikely ally.
Labour has never been a friend to the financial planning industry. They were as complicit as Liberals in trashing our industry into oblivion. When FAA and AIOFP attempted to approach Labor backbencher for support they were sent packing. Labor is more anti adviser due to their Industry Super backing. Neither Labor or Liberal deserve our vote!!
I did the same survey a while ago and even though i continue with my treatment, I will never go back to the industry, not because of the education requirements or the compliance, as any passionate adviser knows, these 2 things wont stop a good adviser leaving the industry. What has stopped me and others is the mistreatment of the not the gvt but rather the licensees of its advisers. Like myself and many others were tossed out with no consideration for us as human beings, business owners, mums or dads who have families to feed, in return for corporate greed and shareholder value, and dont forget the fat pay packs for the exec’s to cull us like rodents. So, after being mentally damaged, embarrassed, shamed and financially assaulted, why would I or anyone else want to go back to a toxic corporate environment.
and there is no indication it is getting any better beyond words from lying politicians.
Thanks for your comments and thoughts. we hope to get a good cross section of responses for 10 minutes of your time. We want to get the results to the govt and politicians and the media about the worst of the unintended consequences of the legislation and how they intend to fix it. Or there won’t be much of an industry left! So get on board and have your say and be heard for once.
Phillippa, thanks to you and Steve for preparing such a comprehensive survey. If possible, please publicise the results through the media, so that our clients and the general public get a true picture of the industry, given the relentless attacks it has received since the Royal Commission. Hopefully, as many advisers as possible take the opportunity to complete the survey.
Such a shame, amid such demand for advice
Why would new blood want to enter this industry. From your first day on the job you have a target on your back with a long line of shooters, in the form of lawyers and regulators aiming at you as you wander through a mixed, high density minefield. (to quote Tom Hanks – Saving Private Ryan).
Anyone entering the industry under the current regeime simply does not understand risk/return. On that basis they should not be an adviser in any event.
Unless the annual renewal requirements of Hayne2 is removed & the educational requirements for experienced advisers removed, well over 1 million Australians will not be able to access financial advice service support. This is a shambolic policy outcome for working families.
All advisers would not be surprised by this. Despite the obvious, the response from the government and regulator has been hollow words, broken promises and actions that continue to make it the current situation worse. Advisers are the only ones looking out for a better outcome for clients, the government, lawyers and regulators are too busy finding ways to make it harder for them to get affordable and quality advice.