It’s no secret that the introduction of FASEA’s education requirements alongside changing industry dynamics has resulted in the financial advice landscape being significantly disrupted. This has been a contributing factor to the substantial decline in the number of advisers operating today.
Running alongside the reduction in the number of advisers operating, we have also seen an elevated and growing demand for financial advice. Consequently, there are many opportunities for existing advisers, who, with those entering the industry, can look forward to a busy and very rewarding work life.
Promoting a career in financial advice to inspire others to excel
A challenge faced by the industry is that financial advice as a career is not often spoken about, or even known about. For us to start to see more emerging advisers, and to ensure we are attracting the best talent to this industry to continue to bolster its reputation, it’s important that advisers are shining a light on what a career in advice looks like and are readily talking about the benefits of being an adviser.
Aside from the potential benefits of flexible work hours and ways of working, being self-employed or employed, there are so many other reasons for advisers to be passionate about their jobs. In the first instance, they are in a rare position to be able to say that their work has an invaluable impact on the community. More than that, a long-term advice journey with clients can enable financial security for those clients as advisers play a leading role in helping people meet and exceed their financial goals.
While financial advice is not traditionally a well-understood sector, it is one that plays a critical role in the ongoing wellbeing of both individuals and the community as a whole. For the industry to continue to move forward, and to accelerate the pace at which we move forward, we all have a shared responsibility to find ways of better explaining the value of financial advice.
Current advisers and prospective advisers working together for the benefit of the community and the industry
One positive from current advisers taking an active role and working closely with future advisers is that they can shape and influence their thinking and ultimately enhance the future of the industry.
Many of us have experienced the impact that mentoring can have on our lives and careers, and advisers who have been in the industry for many years can make a huge difference to advisers who are just joining the great profession of being a financial adviser. We also know that new advisers entering the industry for the first time can offer a fresh perspective and help the current advisers potentially change the way they do things. I hope that many new advisers have worked in other industries so they can bring with them knowledge from that industry – this knowledge could see the introduction of technology, for example, that advisers could take back to use in their business and with their clients.
As the advice industry continues to evolve and change, it’s essential that we bring in more aspiring advisers and we help them to embark on a journey that will enable them to meet changing client needs and differentiate their personal offerings. With the growing demand for advice, the environment for advisers is very promising indeed. It’s a great time for Australians to pursue a career in financial advice, and we all know how rewarding it can truly be, so let’s share that.
Niall McConville, general manager retail distribution, TAL
I really love being told that financial planning is great by the employee of a company that supported the LIF reduction in commissions but then went missing when it came to the reduction in compliance that was supposed to happen at the same time. Anyone becoming a financial planner should reassess their career choices. Personally I regret making the decision to become a financial planner 15 years ago despite the client interactions being positive – unfortunately they are a small part of the role now.
Regrettably, a loss creating career with more extensive downside to come. Loved by clients and disparaged by Government.
Quite edifying and inspirational article, on one hand. Unless one knows the back-story. I struggle to see it all meaning much when life companies abandoned the fight for advisers when it came to keeping commissions at a sustainable level AND keeping the (just tolerable) 1 year clawback in place. These two items mainly (in addition to ridiculous new levels of compliance red tape) are the reasons most experienced life advisers have left or will leave prior 2024. This IS the reality, believe me. I’ll be very surprised if there’s 5,000 advisers left after 2024 and I have done extensive analysis on this.
Risk advisers, for their part, will be extinct for all intents and purposes, thanks in major part to the life companies NOT championing their cause with respect to commissions and clawback period. Both are crucial in sustaining a risk adviser in business. Both are currently working against the recruitment of Niall’s new age adviser force. Of this I have absolutely no doubt and it really pains me to acknowledge it.
The life companies will be in dire straits if RoboAdvice cannot be made to replace them. Oh, guess what – it can’t. Low commissions and 2yr clawback are also the reason that Niall’s article is misguided as to how the industry ‘could’ be built in future. Anyone who knows anything would by now know pure risk advisers cannot operate by charging fees – don’t even bother to deny this the facts, experience and jury has spoken. It would be political suicide, however, to unwind at this point (“build back” as ol’ mate Biden might say!) and sadly this will not happen in time if ever.
I know for a fact that MANY life advisers saw the writing on the wall and acted when the deplorable 2 year responsibility period for risk commissions breezed in unchallenged by the life companies, in fact, the companies welcomed it for obvious reasons. It was not in the client best interest OR their adviser’s best interests – but yet, here we are! So yes, articles like this are wonderful but the reality is often completely different to idealism.
Our practice just spent close to 10 hours from intro to completion on a young professional’s income protection – important to her, but not economically viable for us – $280 I think was the commission. This paltry reward will be spent long before the lifelong compliance obligations cease.
Of course it does.
It is a shame that politicians and regulators do not see it the same way.
This industry is not for the faint hearted. You will lose your home, your reputation and your mind with one error.
at the risk of facing a jail term for not ticking a box or saving a signed form on file – no thanks!
Any new entrant into this profession under the existing compliance regeime does not understand risk/reward.