Advice industry dazzled by challenges: Tynan

Advisers are struggling to accept and adapt to the demands of the post Future of Financial Advice era, according to Connect Financial Services chief executive, Paul Tynan.

Tynan called on the Government, industry associations and education providers to support practice owners to fulfil their goals of expanding their businesses or developing succession plans.

"Due to a never before experienced volume of structural changes across the financial advice sector we have practice owners who are frozen like a rabbit in the headlight, not knowing where to turn to execute their growth or succession plans," he said.

"The majority of financial advice firms are small businesses that don't have the infrastructure or cultural alignment to fit in with overseas equity funds, fund management firms or institutions where growing distribution will always be the focus and not the clients."

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Tynan said Baby Boomer advisers were the most affected by changes, and needed to be encouraged to remain in the industry to work alongside the next generation of advisers.

"Mature age advisers can continue to work on as ‘relationship managers' where their business relationship, networking and interpersonal skills can be passed onto the new generation of fee for service financial advisers who will benefit immensely from their wisdom, experience and guidance to help them to build a self-employed business model", he said.