By Nicolle Szollos
Coming to grips with the Financial Services Reform (FSR) Act is crucial for those providing education within financial services according to Australian Securities and Investments Commission’s (ASIC) Consumer Protection special adviser, Annette Donselaar.
Donselaar was speaking at the inaugural Association of Financial Services Educators (AFSE) seminar held at Homebush in Sydney’s west late last month and attended by 80 delegates.
The conference was the first event for the newly created AFSE, headed up by interim president Gwen Fletcher.
“Effective understanding of FSR Act is vital, and training with the appropriate backup is also vital,” she says.
Donselaar says the challenges for learning lay in educating those in the industry, at both the management and representative levels, of their obligations under the new legislative structure.
Focusing training on compliance and technology, Donselaar says a foundation view needed to be taken, looking at the reasons for the changes and why they are important.
“We need to go back to the fundamental reasons as to why we are doing this in the first place. Training and learning development is an integral part of compliance. It’s a bit like Laurel without Hardy, it doesn’t make sense.”
Financial Planning Association (FPA) Sydney chapter chairman Tom Collins followed with his report, looking at future trends in the industry and how they will be affected by FSR Act.
Distribution and asset allocation would be two areas to change under FSR Act Collins says, along with financial advice in general, fees, market conditions and accountability.
He also raised concerns that debt products and property fell outside the FSR Act’s aim to create a single licensing regime for all financial products.
Technology and ratings were also areas that would be changing their shape in the future of financial planning, Collins says.
“Over time, there will be more demand for advisers and all will mean more competition. This will be encouraged by technology, which will lower the barriers to entry. Anyone can get software from Sanford and become a virtual broker,” he says.
Collins also shared a set of predictions, saying that over the next three to five years the industry will fragment, with greater segmentation and a new breed of players. But as well as providing challenges, these would also open up opportunities for financial services educators.
