Baby boomer planners pointed to the exit
Baby boomer financial planners need to step back and take stock of the reality of the things that are changing in the industry and which may prompt them to exit, according to a financial services business broker.
Connect Financial Services principal, Paul Tynan said the change factors which the baby boomer planners needed to take account of included the rise in minimum education and competency standards, introduction of a national examination for financial advisers giving personal advice and the introduction of a public register which will include a record of qualification and industry history.
Further, he warned that those considering an exit needed to understand that the process could take at least 12 months.
"Business owners need to heed the very real situation that things have changed dramatically since 2007 and more change is coming. The political uncertainty as seen by the Future of Financial Advice (FoFA) amendments is normal and not an aberration," Tynan said. "Risk insurance was not included in the FoFA changes however because of the losses coming out of the market all aspects of this segment is now, and will continue to come under more pressure for change in the future."
The business broker also had a message for planners who had invested heavily in "electronic engagement", warning that financial planner was a face-to-face business.
"Personal advice financial planning is based on a one-on-one client relationship and those who believe that this foundation for engagement can be replaced with electronic interaction — good luck and I hope your capital investment was worth it," Tynan said.
Recommended for you
Unregistered managed investment scheme operator Chris Marco has been sentenced after being found guilty of 43 fraud charges, receiving the highest sentence imposed by an Australian court regarding an ASIC criminal investigation.
ASIC has cancelled the AFSL of Sydney-based Arrumar Private after it failed to comply with the conditions of its licence.
Two investment advisory research houses have announced a merger to form a combined entity under the name Delta Portfolios.
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.
