There is no doubt that the pendulum is swinging more our way, with for the first time, both sides of government, and the regulators acknowledging that the compliance red tape has gone too far.
Several factors might disrupt this stability over the next 12 months. The rapidly approaching federal election has the potential to either help or hinder our industry from reaching some agreed status quo when it comes to regulation. This election could prove to be a positive, as there will be policies discussed and an election platform focus on advice, and more specifically, advice inefficiency and affordability. With this focus, both parties will articulate their positions, and potentially force the spotlight onto the obvious over-regulation of financial advice.
Potential market volatility due to a spike in inflation and rising interest rates, will encourage advisers to focus on ensuring that their clients are confident in, and understand their investment strategy, so that they are comfortable to ride out market instability. COVID-19 has taught us to expect the unexpected, so there is also the potential for some continued disruption for years to come.
This potential stability creates opportunities for both licensees and advisers.
For licensees, there is the opportunity to take stock and consolidate our supervisory capacity. Compliance teams can turn their attention from interpreting regulations and issuing licensee policy documentation, to supporting advisers more proactively, building community and engagement whilst also ensuring that advisers are well supported to provide compliant, quality advice.
For advisers, greater certainty and clarity around compliance obligations should enable them to focus on connecting and getting closer to their clients. Taking the time to align their service and support to what their clients need and want and helping guide clients through what might be a turbulent year for financial markets.
It is always difficult to anticipate what is ahead of us in the next 12 months. However, with the acknowledgment among all parties that the pendulum needs to swing back towards a more considered and transparent approach to compliance and the advice process, I strongly believe that we can come out the other end in much better shape.
Eugene Ardino, chief executive, Lifespan Financial Planning
