Just how do you do that in an environment like this? I believe the answer is deceptively simple. Maybe not easy, but certainly simple…
When I first stumbled into this industry a trillion years ago there was a saying that really resonated with me. It’s stayed with me all through my career: “people don’t care how much you know, they only know how much you care.” This is not to diminish in any way the importance of education but proper qualifications are just tickets to the dance, not the end-game. There are plenty well-credentialed monsters in all industries.
The end-game is also the starting point. It’s the point where your intentions and actions speak louder than your credentials. Your actions – especially when nobody’s watching – speak to the heart of your integrity. It’s the living-and-breathing reason a profession exists in the first place: to serve the interests of the public.
Dr Simon Longstaff AO (in his capacity as chief of the Ethics Centre) gives a wonderful talk about the difference between industry and the professions. The difference between the two, he says, is that industry is in the business of serving its own interests, whereas a profession’s purpose is to serve what’s in the interests of the public.
Isn’t that what we all want as financial advisers, though – to take care of our clients and look after what’s in their best interests?
Why is it, then, that all the public surveys come to the same conclusion? As an industry, financial planners are a self-interested lot, according to the public, and the reason why is because the public sees us as an industry, not a profession. This belief is hardly ill-founded when our industry lobbies against these long-overdue changes:
– Mandatory disclosure of adviser independence;
– Abolition of ongoing fees in favour of annual engagements;
– Required sharing of intel on AFSL-hopping advisers;
– Close accountability of adviser conduct; and
– Adherence to standards that require professional consideration, rather than box-ticking
These changes are happening for GOOD reasons, not bad ones.
It’s absolutely possible for you, as an individual, to break out of being associated with that crowd. Make the choice to behave like you’re a member of a profession, right now, by adopting the view that these changes serve the public interest. Why wait for regulators to impose standards you can be proud of?
Being a member of a profession means being part of a close-knit community of like-minded individuals who get enormous professional and personal satisfaction because they’re doing something meaningful. And the public recognises them for that.
When I’m asked “What do I get if I join the Profession of Independent Financial Advisers?” the answer is simple: you get to contribute.
Contributing will earn you the recognition your contribution deserves. If you aren’t engaged in your profession, if you aren’t a contributor, if you’re an idle spectator or detractor, you have no right to complain.
Members of professions don’t lobby government to get an easier gig for their members. Members of professions don’t survey industry to find out what is popular to win new members. How does doing that serve the interests of the public?
If you take a good look at why you do what you do, I’m prepared to bet that you and I are singing from the same hymn sheet.
You want impeccable standards, too. You want to be immensely proud of what you do, too. You want to make it impossible for fly-by-nighters to do what you do, too. You want the recognition and trust that goes hand-in-hand with championing the public’s interests, too. You want to be part of something magnificent, too.
You want to get the most out of this profession? Throw yourself into it.
Daniel Brammall, president, Profession of Independent Financial Advisers
When it cost your business $300 pa to chase up ridiculous annual/biennial red tape “opt ins”, when you’re only charging that client $300 pa, then spare me the outrage. The elite Opt-In supporters (who are charging $10,000 pa), are destroying advice for low income earners. Meanwhile, the intrafund marketing reps are collecting $140,000 pa in salaires & bonuses, without ever having to chase up one Opt-In, and never obtaining informed consent. It’s insane.
Most consumers want to deal with independent financial advisers. And when consumers say “independent” they mean an adviser whose practice isn’t owned or controlled by a product company.
Unfortunately the Corps Act doesn’t reflect or support this consumer desire. The Corps Act mandates a completely different interpretation of the word “independent”, to also prohibit certain payment options. These includes options which many advisers choose to offer, because they are often in the client’s best interest and aligned to the client’s preference.
The only people to benefit from this bizarre Corps Act reinterpretation of the word “independent” are advisers like Brammall and his disciples who deliberately withhold payment options that could potentially be better for their clients. They do this to derive commercial advantage for themselves by exploiting the Corps Act anomaly in their advertising.
It’s time the Corps Act definition of “independence” was changed to reflect the generally accepted meaning of that word, and to better serve the interests of consumers.
This is a great comment and shows the power of the banking lobby and perhaps the IQ of the regulator.
Favourite word ” Scumbag ” Michael ?
Blowing up Dan Brammall’s ego only encourages him to post more of the self promoting righteous material he has continued to do so for way too long now.
When Daniel states that members of professions don’t lobby Govt ,has he ever seen the AMA in action when they need to address issues of importance to them ?
Their website states ” The AMA promotes and protects the professional interests of doctors and the healthcare needs of patients and communities. Representing doctors, the AMA works with governments to develop and influence health policy to provide the best outcomes for doctors, their patients and the community “.
What is Daniel saying here??….that the financial advice community should not be negotiating with Govt with a goal to achieve a better outcome for their profession and their clients ??
I think the only hymn sheet that Daniel is singing from is the one that his followers sing together so it makes them feel a part of something.
Simon Longstaff should know all about the difference between industries and professions. He is one of the captains of the ethics education industry. He has generated lots of revenue for himself and his industry colleagues by using a government board position to force the financial advice profession to purchase more ethics education. He should be investigated for corruption.
Yet another ” advertorial ” from the highly predictable Brammall singing from his very own hymn sheet as always.
Is Simon Longstaff really saying that as an Accountant ( ie Professional) that instead of their priority of running their business in order to make a healthy profit from the services they provide to their clients and to meet their expenses, their first priority is to serve the interest of the general public ???….most of whom will never be clients of the Accountant’s practice anyway ?
Whilst I believe strongly that the vast majority of adviser and financial planners see themselves as serving the public good in a generic way, it is infantile to believe that medical, legal, architectural, pharmaceutical, psychiatry, psychology or dental practices don’t first and foremost operate for the intended purpose of running a profitable business for the participants and providing a range of services to those who pay them.
These practices are businesses,not charities which happen to provide much needed services to the general public.
Great article Dan with many powerful points for all of us to appreciate and more importantly, live by through action. The scumbag greedy crooks who made a choice to do the wrong thing, their enablers and loyal “Yes Men” have already been banned by ASIC (or soon will be) mostly failed anyway, losing their ill gotten gains by fate or bigger scumbags they got into bed will come and go. Those of us who choose to help our colleagues and deliver for our clients will always triumph because the win comes from the doing and not what you get out of it in dollars. Help everyone you can, make a difference, care about everyone and win. All the best.