The removal of grandfathering in 2021 appears to have tipped a number of financial planners over the edge in terms of their decision to exit the industry, according to an ongoing survey being conducted by Money Management.
The survey, when taken together with earlier Money Management research on the impact of the Financial Adviser Standards and Ethics Authority (FASEA) regime suggestions that planners who were considering exiting but remained undecided, had made up their mind following the release of the final report of the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry.
However, the number of planners indicating they have made up their mind to exit is still only around 35 per cent.
A significant proportion of planners responding to the survey had also signalled the degree to which an end to grandfathering has served to undermine the value of their businesses, with more than 40 per cent stating it has had an impact in terms of buyer of last resort (BOLR).
The survey is ongoing so please share your views here.
Comments
Its all just bad timing. We all pretty much knew Grandfathered commissions for super were going to go, but that coupled with FASEA as well as the potential removal of insurance commissions just leaves us with too much uncertainty.
Why would degree and CFP qualified advisers spend a year or 2 studying to work in a profession which may not even exist (except for the HNW clients) in 3 or so years?
james, it was grandfathered in law by labor and LNP were happy with it. When does un grandfathering work? Its a test of law that sets precedence and this also is quite frightening
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