Over 100 local firms were included in the 800-plus participant survey by asset manager Dimensional Fund Advisors, which found managing compliance and regulatory changes as the number one challenge for advisers.
Workflow processes and improving profitability came in as the second and third-biggest challenge.
Of the Australian firms sampled in the survey, 58 per cent named compliance management and regulatory changes as one of top three challenges, compared to just 12 per cent of US participants.
It comes after a report released last month by research firm Investment Trends also noted that advised clients are also concerned about regulation and want improvements to communication around regulatory changes.
Dimensional Australia client group co-head Nathan Krieger said the new survey shows that the industry must tackle the issue of accessibility of financial advice for clients.
“What we know is that advice firms are being incredibly purposeful about how they grow their businesses, how they improve their processes and being aware of the obstacles they need to overcome,” Mr Krieger said.
“On the operational side, though, it seems the regulatory environment is still the number one focus.”
Earlier this week, Labor’s financial services spokesman, Stephen Jones said if elected the party would look to improve both the cost and accessibility for the sector.
Mr Jones said a Labor government would “clear the way” so that advisers “can get on with the job of providing the valuable advice people need at a cost that they can afford”.
After FOFA, the Royal Commission, and responses to the COVID pandemic I think it is fair to say that I will never vote for the ALP or Libs again.
Red tape reduction unit to the ready says Joseph Longo the ASIC leader…If only he could find them!
One thing Labor could do to “clear the way” is having a single disciplinary body for financial advisers.
It’s surprising Labor has allowed Hume to get away with introducing yet another disciplinary body and deceptively calling it a “Single Disciplinary Body”, when it is clearly nothing of the sort. Advisers are still subject to multiple other disciplinary regimes including ASIC, AFCA, Austrac, and their licensee. Accountants and real estate agents have none of these. This multi layered approach is a major driver of the excessive cost and complexity of professional financial advice.
Incorrect. Accountants are subject to Austrac and TPB. Advisers have ASIC and Austrac and soon no TPB or FASEA. If your self licensed no licensee.