In a statement, Mr Tynan said there is a low likelihood that mature-aged advisers will enrol in university to complete degree qualifications.
“Rather than having this knowledge and experience lost to the industry and the next generation of advice practitioners, a new licensing regime could be created where the older adviser could move into a relationship adviser role and still receive brokage from their client register as they transition to retirement,” he said.
Mr Tynan added that experienced advisers are known to have soft skills which, along with technical skills, are an important part of being an adviser.
“Modern education does not teach the interpersonal engagement skills that the more experienced advisers have in abundance. The provision of quality advice will continue to be a P2P business and the ‘soft skills’ [remain] essential for long-term business/practice success,” he said.
“How to create a bridge between technical and soft skills advice is an issue that needs to be addressed as industry noise gets louder about there being no alignment between job skills and education.”
Nevertheless, Mr Tynan still believes the industry needs a base level of education standards to be put in place, as well as continuing education.
“Although an adviser may have attained a CFP qualification, this does not mean that they have the capacity to give advice or able to manage a financial planning SME business,” he said.
“Education, personal and professional development is a continuous process and no one can ever stop learning in this universal world of knowledge.”
…and then there will be clients who have dealt with the same adviser for 20 odd years, is just about to retire and wants to know their trusted relationship of the past 20 years will be there for them. But it may not. They will have to start all over again with someone new? (I have ALL the post grad quals so am not affected by this) – but looking at this from clients ‘close to retirement’ perspective. Are we considering their needs? They are important!
Kind of like when all those accountants with a CPA did a 60 minute exam to be grandfathered in to CFP status before those changes. Now responsible for a heap of accountants pretending to also be ‘advisers’ even though 99% of what they do is accounting.
Change wont matter unless done properly. New rules across the board (and I’m 16 years in advising and have CFP (real one) but need to do my masters – I’m gunna suck it up and get on with it)
When will these excuses ever end? Life experience and formal education are not mutually exclusive. They can go hand in hand.
I know of at least a few experienced planners who have put in the time for additional formal education over the years.
We talk to our clients about insurance. If one has neglected to insure their career over the years, that is not a reason for a special exception.
Bring it on. Raise the standards. Just make sure there is a reasonable timeframe for those who need to catchup (~3 years).
Let’s license older advisers to hang around mentoring younger advisers and teaching them how to sell, sorry, I mean how to engage. Do they talk directly to clients? If so, are they providing advice? Do they come up with the strategy, or do they leave that to their newly educated side-kick? Will the SoA have to be in their name or their young colleagues? Who bears the compliance risk?
Can’t see how it works, and can’t help wondering if Mr Tynan has really given it much thought either,
This grumpy old adviser will go and hit the books methinks!
Seriously, when will grandfathering everything ever end…
‘Too difficult to actually service existing clients and get them to opt in’ – No worries, grandfathered.
‘Not enough time to get a degree/I have enough experience (albeit in a time we are trying to get away from)’ – No worries, grandfather that too.
Its about time its simply all or nothing. Either raise the standards for everyone or don’t.
Do we really need to create yet another group of grandfathers?
I agree with David Baker about keeping some of the older advisers as a steadying influence or a historical knowledge bank for practice management but that is different to advising.
I’ve got enough grey hair to have been through the previous changes and to be brutally honest the amount of grandfathering has contributed to the industry not making the big steps to be the truely professional industry that the professional advisers and business owners in our industry deserve.
Many many of the newer advisers I deal with have soft skills better than the older advisers so I think we are putting far too much importance on this value in an older adviser – its not enough to warrant grandfathering them yet again. I do however support that some of the older people, if they don’t want to gain the new education standards, be kept in the industry as non advising historical knowledge banks because this is where they can add the extra knowledge that the newer advisers can’t gain in a university. But never ever underestimate just how business and client capable many of the newer advisers are – they can actually add to an older advisers knowledge bank.
There is a generational change in both industry professionals and clients and the industry needs to change its perceived or real image to keep pace with it. If we lose some advisers who don’t want to accept the new education changes to the pure advising role then perhaps its a small price to pay. Unfortunately it may have a negative impact on those advisers but the industry will be better for it.
ASIC and the Law grandfathers everything else – why can’t they grandfather the grandfathers?
Certainly I agree, the older/mature stockbroker is and always has been a most important part of most stockbroking firms, offering experience and a steadying influence on Management and to younger advisers. I believe it would be a shame to lose these major assets to our Industry. I just can’t see these people returning to university so they can put a further Certificate on their Office wall, if anything I can see these highly experienced/mature people being used to teach the younger brigade.
I think Paul’s suggestion is an excellent idea. Advisers’ over 50 years of age with many years experience should have some consideration given to the life skills they bring along with a lifetime of acquired knowledge.