Less experienced financial advisers can benefit from the opportunity to learn from their more experienced counterparts, according to Association of Financial Advisers (AFA) national president Jim Taggart.
The AFA yesterday held the first of its GenXt programs, which aims to bridge the gap in the way advice is given between advisers new to the industry and those whose experience spans many years by way of mentoring.
“It’s a … rally in our association where we’re passing the baton,” Taggart said.
Of the new members currently joining the AFA, 60 per cent fall into the Gen X category while 40 per cent are older advisers, according to Taggert.
Taggart said older advisers were able to “paint pictures” and were “ extremely good story tellers”.
He said recent turmoil require a very serious response to ensure advisers are equipped with the knowledge and skills to enable clients to make better decisions.
As part of the program, advisers with more experience mentored in everything from compliance, engagement and writing Statements of Advice to how to keep files together and technical support, Taggart said.
“In the last 10 years and particularly post Financial Services Reform Act (FSRA) with the explosion of technology and the need for higher and more sophisticated areas of cognitive knowledge, the educational bar needed to and was justified to rise.
“For younger advisers, this knowledge trail was a fantastic ‘entree’ into the financial services landscape, but [came] at the detriment of developing sophisticated engagement skills,” Taggart said.
