AFA bridges old and new knowledge gap
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.
Recommended for you
The top five licensees are demonstrating a “strong recovery” from losses in the first half of the year, and the gap is narrowing between their respective adviser numbers.
With many advisers preparing to retire or sell up, business advisory firm Business Health believes advisers need to take a proactive approach to informing their clients of succession plans.
Retirement commentators have flagged that almost a third of Australians over 50 are unprepared for the longevity of retirement and are falling behind APAC peers in their preparations and advice engagement.
As private markets continue to garner investor interest, Netwealth’s series of private market reports have revealed how much advisers and wealth managers are allocating, as well as a growing attraction to evergreen funds.
