In the wake of the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry, the Financial Adviser Standards and Ethics Authority (FASEA) regime and the exit of the banks and major institutions from wealth management, the Australian financial planning industry will never be the same again.
Between now and 2024 much will happen to ensure that financial advisers play to a very different set of rules to that which has prevailed in the industry over the past 20 years, with one of the key dates being the end to grandfathering in 2021.
The Money Management Guide to Future of Wealth Management attempts to look at the factors which are impacting the future of wealth management in Australia and gain insights for those who are trying to devise the strategies with which to navigate the changes over the next half-decade.
If one thing particularly stands out, it is that the relationship between advisers and their licensees will change and, because of this, the commercial underpinnings of dealer groups will also need to change.
Then, too, the focus of the regulator, the Australian Securities and Investments Commission (ASIC) and its inter-relationship with FASEA will be vital, together with the role of industry/professional bodies such as the Financial Planning Association (FPA) and the Association of Financial Advisers (AFA) as code-monitoring bodies.
Financial advice in Australia is facing a new future. The legislative/structural framework is largely in place but how it will actually look and feel remains a work in progress.