Are planners in two camps – ‘acceptors’ and ‘rejectors’?
As 2018 comes to an end a consultant has argued financial planners can be placed within two camps – the ‘receptors’ and the ‘rejectors’.
According to Mentor Education Group managing director, Dr Mark Sinclair the ‘receptors’ have accepted the new compliance and education reality and are embracing what he describes as “the fourth Industrial Revolution”; that by reengineering their practices, adapting and applying new technologies, they can ride the crest of the wave to new, exciting commercial opportunities.
He said the ‘rejectors’, mainly comprise mature age and experienced advisers, that “having gallantly weathered storm after storm in the past, have decided this current regulatory environment is much too much and have chosen to retire and exit the industry before 2024”.
Looking back over the industry, Sinclair acknowledged it had faced a literal tsunami of challenges including the Royal Commission, the Financial Adviser Standards and Ethics Authority, and the Productivity Commission report.
However, he said he believed the legacy of the Royal Commission and new education/professional development requirements would, over the long run, be positive for financial advisers by creating a stronger environment which would result in improved transparency, governance and business growth.
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