Advisers see future opportunities after regulatory hurdles

The challenging period for financial advisers surrounding regulation and education is coming to an end and advisers are able to look ahead for the first time.

The last few years since the Hayne Royal Commission had been characterised by increasing regulation and scrutiny, more paperwork and stringent educational requirements with the Financial Adviser Standards and Ethics Authority (FASEA) exam.

But those in the industry said they were beginning to see a light at the end of the tunnel.

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Jodie Blackledge, chief executive of Fitzpatricks Private Wealth, said: “I feel the industry is at a tipping point and people are starting to think about doing what they enjoy again. They now have the capacity to think about the future and it’s the first time in a while that I’ve seen that.

“There have been lots of exits from the industry so it has suffered but the people who have stayed are the ones who are going to be here for the long term and they have a bright future.”

According to the Money Management 2021 TOP Financial Planning Groups data, the number of financial advisers had fallen to 11,500 from 16,140 in 2018.

Steve Donald, financial adviser at ANZ, said: “It’s always a shame when you lose good people who have seen the industry grow and have a lot to offer but if we want to get to the next step in becoming a profession then there is only way to go. It’s the right thing to do in the long term in terms of people’s livelihood”.

Chair of the Financial Planning Association of Australia (FPA), Marisa Broome, said she felt the current environment was only a “speed hump” in people’s careers rather than a long-term change.

She said the current changes had meant financial advice had been less flexible as a career than but that she hoped this would change, particularly as the pandemic had increased the number of people who were working remotely.

“There isn’t as much flexibility anymore but I think this is a moment in time and a speed hump from the regulatory change but hopefully we will go back to being flexible again,” Broome said.

“Working from home is definitely helping with that and I am hopeful we are seeing a change.”

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I’m sorry but every time ASIC, Hume & Frydenberg say they want to make Advice more affordable = massive new round of BS Regs and Red Tape costs.
Given the amount of utter BS Red Tape costs about to hit early next month. How are we seeing any relief ???
Seriously we have to get rid of Frydenberg & Hume and clean out ASIC starting with Ms Press.

Agree 100%

So far there was been talk, that's it. Clients are still getting 90 page SOAs, the costs of advice are still increasing, access to financial planning is still limited to a very small percentage of Australians, and to top it off more regulations are about to come into effect next week. There is no relief. While everyone is having a nice discussion about the problems the government and ASIC have created nothing has been done to fix anything.

'think about the future", "shame" , 'speed hump" about extict, illiquid, broke and business closed, unemployed....that's many i know
But one politician famously said " you have to beak an egg to make scrambled eggs"
I will have Canberra eggs where they are always sunny side up :)

Premature call.

There are still tons of issues unresolved. From insurance commissions, through to whatever the next 'Government of the Day' will do post election. There are no promises from anyone regarding anything.

There is no pathway to remove 961B(2) which was something that Hayne talks about. Nothing. Status quo to prevail for now and more uncertainty to come.

Insurance commissions may end up becoming a moot point with so many insurance specialists not willing/able to meet FASEA requirements, and generalist advisers abandoning insurance advice due to worsening regulatory and product issues.

These are the very reasons commissions are an issue - at 60% you can't make money unless you're writing minimum $8-$10k premiums. Its accepted that very few clients will pay the full fee for an SOA ($3k). If insurance commissions went back to 80% with reduced clawbacks or level commissions back at the previous rate of 30%, then you'd find many more advisers would be willing to deal with the product and regulatory issues.

Some one is living in “fairy dairy” land if they think things have improved
Nothing has changed ! I don’t see relief in the studies for advisers who only deal in life products or stock brokers who don’t deal in any of it ?
New onerous issues being implemented next month certainly no interest from the insurers to pay the commission rates required to work on and seek out new business
There will be a mass exodus at Xmas as previously predicted but perhaps a little less now that some can “ hang around “ until September 2020
Nope !! Nothing new or different in my eyes

It's nice that government rhetoric has changed. But unless substantial changes are made, and very quickly, the coalition will have thousands of financial adviser enemies at the next election. Very few are thinking positively like those quoted in this article.

The people commenting in this article are either out of touch or extreme optimists. Especially disturbing are the FPA's comments; there should be no acceptance of what has happened and no positive slant placed on thousands exiting the industry and both red-tape and fees increasing.

Yes, i suspect you're correct in that some are just out of touch. Pretty sure if I went and got advice from Marisa Broome firm she'd charge me North of $10,000 plus. For some, regulatory burdens have been a win, and the more regulatory red tape, the more they can charge. For other Advisers that prefer to deal with ordinary Australians they'll be forced to leave.

the future they see is the nice and bright one on 1 Jan 2022 after leaving this industry.

The light at the end of the tunnel is an oncoming train... the exodus awaits!

As a very successful adviser who had to sell their business and leave the industry after 32 years (due to industry related ongoing medical issues) without a single client complaint, it was a the only option to consider. Ask yourself, is this industry worth your sanity, family happiness and your financial future?

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