Despite increasing exams and compliance, this is the “best time ever” to be a financial adviser, according to one adviser.
Speaking to Money Management, Kris Martin, managing director at KDM Financial, said the changes following the Royal Commission had meant the industry was free of “rogue sharks” which had previously dented its reputation.
“This is the best time ever, a perfect storm is underway, there is less competition as advisers are exiting the industry and the banks have exited so they can’t sell products anymore so the reputation with the public is better. In five years’ time, it will be even better,” Martin said.
“Yes, they have gone overboard with the regulations but they have had to do that to get rid of the rogue sharks in the industry. My belief is that by 2025, they will be able to ease back and make the regulations more workable.”
He said he believed many advisers had not expected the mandatory qualifications under the Financial Adviser Standards and Ethics Authority (FASEA) to come into force as they had been talked about for many years prior, which was why many were now opting to leave.
“It had been talked about for 15 to 20 years, when I joined the industry I was recommended to get a degree as that was the way the industry was going but a lot of others didn’t think it would become mandatory,” Martin said.
“The bar has been set now and it is so that the public know we are responsible and that we have the education to back up our skillset.”
Comments
This guy is naive to think the rogue sharks are out of the industry. I like his enthusiasm and best of luck to him but he's gullible.
1. Nothing wrong with a bit of optimism, I wish this Adviser every success
2. "rogue sharks" LOL. Are these different to regular sharks? They must be apparently.
I think he just meant 'rogues' and yes I would agree in the assessment that many or most (certainly not all tough as that is almost impossible) of these have now been excised.
If Martin got his degree 15-20 years ago, one assumes it has been deemed worthless by the corrupt FASEA Board, and he is back doing repetitive study to designed to enrich those Board members.
Unfortunately the "rogue sharks" in our industry are now more prevalent in the regulators than the adviser ranks.
Another nugget of wisdom from a non-adviser.
Best time ever? Not sure about that but I do agree the future is bright if you can navigate the next few years.
Demand will increase, supply of advisers will fall. Economic 101 ppl, if you can maintain your patience and mental health you will increase your remuneration and get to choose who is lucky enough to be your client.
On the Sharks issue, there are loads in accounting and legal and quite a few in medicine. To expect to be all gone is in my view naïve, you will never be rid of them, no profession is. A professional standards board if properly implemented and kept away from the keystone cop in ASIC we can work together to weed out as many as possible.
I agree with you Kris, however it's good times not because of less rogues, but because we can now easily increase adviser fees, tell low value clients to f*#k off and then blame the regulator and big banks.
It's about time we start to take beter care of ourselves, our staff and our businesses, instead of being bent over and used like a bike rack by the media, industry funds, dealer groups and the politicians.
Reality: This is probably the best comment I have ever read in this usual whinge fest. Keep up the good work
Yes agree..might print it out and stick on the wall.
Put ASIC and all the other BS aside that weighs on our lives and yes, its never been a better time to be an adviser. Demand for advice, fee income and client engagement has never been higher from my experience. As far as the industry being free now of rouge sharks, I think this guy is naive! There are still plenty of rogue sharks, they are just the much smarter ones left now!
Naïve to say the least. This industry is not for the faint hearted. Yes, you can do extremely well, however the stress and compliance burden is extremely challenging.
Naive is a simplistic term for such thinking. Rogue sharks! Where do these people come from?
Get real buddy! The industry has had real and sincere people in it from before you were born! Education doesn't prevent someone from being a rogue shark and nor does it mean you are smarter than the average bear! Stop repeating the tripe that comes out of simplistic minds about what's happened in the industry. The bulk of those who have left, had long hard years of good honest service to the community. But enough is enough!
Fancy sitting back in your little palace rubbishing those who paved the way with honesty and ethics long before it was required by the corrupt and incompetent FASEA.
You are such a compliant little fellow sitting in your glass and ivory tower! Stop throwing stones. Shame on you!
I do love how people think that rogue sharks must have minimal intelligence or couldn’t pass an exam or do a course. Remember alot of those rogue sharks were authorised, they had credentials. Rogue sharks will always exist and this is why we have compliance and the new laws.
Yes it’s a great future for advisers - if you can survive the legislative nightmare that is the current regime.
Would you care to walk in my shoes for a day?
I am thinking I will mortgage my freehold home (which hasn't got a mortgage) and then buy some existing advisers client book at 4 x revenue. as it is the best time ever.
just want to test this with the crowd to see if this idea has any merit. what do you think everyone?
and about regulations being wound back, they said that 10 years ago, 5 years ago, and now, and they will keep saying it 2026. not gonna happen. between now and 2026 there are a number of additional requirements coming through.
Great idea as long as you get an unconditional guarantee for a full refund if clients leave, or legislation changes, or market dynamics change, or you simply can't make a go of it.
But of course no-one would ever offer such a guarantee, and no-one ever has. If you think such a guarantee has ever existed you have allowed hope and optimism to prevail over careful due diligence.
don't invest in a business. sell your business and take the money and buy as many residential properties as possible. always goes up. government guaranteed.
get yourself eyeballs into debt instead. always works. all of Australia is doing it, never gone wrong. never will.
All reasonable historically, can't say I agree with "never will". BTW, hope you issued an FSG for your advice Bahahaha
Great ides, as long as you can service them all, LOL... which is what you're going to have to do to keep the ongoing fee income. :P
Don't forget that you'll need to keep some sort of "slush fund" to enable yourself to pay half of the ASIC levy amount in future years, since you and Kris Martin will be the only advisers left to fund the entire amount. LOL
Oh dear, the guy is oblivious to the fact that this is all according to the Liberals plan. The Liberal plan isn't to get rid of the "rogue sharks', it's to get rid of all independently aligned advisers.
The banks will come back with a new digital advice format, and the super funds will continue to expand intra-fund advice and avoid the costs and compliance which independently aligned advisers face. The new ASIC and TPB taxes from the Liberals specifically targets independently aligned advice.
Looks like the people in the picture have just heard an incredible joke. LMAO.
If this is what he says about fellow advisors, then I feel for his clients!
Fancy putting himself in the spotlight like that! Then again, the publication needs something to print! News must be light on in lockdown!
Great article Kris, coming from an adviser currently in the industry it's refreshing to see a positive viewpoint for a change. Those that embrace the changes will be best positioned for the future.
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