Despite increasing exams and compliance, this is the “best time ever” to be a financial adviser, according to one adviser.
Speaking to Money Management, Kris Martin, managing director at KDM Financial, said the changes following the Royal Commission had meant the industry was free of “rogue sharks” which had previously dented its reputation.
“This is the best time ever, a perfect storm is underway, there is less competition as advisers are exiting the industry and the banks have exited so they can’t sell products anymore so the reputation with the public is better. In five years’ time, it will be even better,” Martin said.
“Yes, they have gone overboard with the regulations but they have had to do that to get rid of the rogue sharks in the industry. My belief is that by 2025, they will be able to ease back and make the regulations more workable.”
He said he believed many advisers had not expected the mandatory qualifications under the Financial Adviser Standards and Ethics Authority (FASEA) to come into force as they had been talked about for many years prior, which was why many were now opting to leave.
“It had been talked about for 15 to 20 years, when I joined the industry I was recommended to get a degree as that was the way the industry was going but a lot of others didn’t think it would become mandatory,” Martin said.
“The bar has been set now and it is so that the public know we are responsible and that we have the education to back up our skillset.”