The incoming education reforms could see thousands of advisers walk, but speaking on Advice Intelligence’s (a.i's) podcast, the Association of Financial Advisers’ 2017 female excellence in advice winner, Lea Schodel, said there was an opportunity for advisers to take up money coaching.
Schodel said rather than leaving the industry, traditional advice would transform into money coaching as a new integrated approach.
“In Australia, there is currently a gap in the financial planning industry when it comes to the pre-advice stage or money coaching,” said Schodel.
“With advice industry changes, there is an opportunity to shift momentum towards attracting consumers who are not currently engaged with their financial future.”
Schodel said despite the amount of information available online on how to best manage money, the majority of consumer still didn’t know how to apply this to their personal financial situation.
This presents current advisers not wanting to meet FASEA’s education standards with an opportunity to focus more on the behavioural aspects of people’s relationship with money and “arm consumers with the tools” to engage further with a financial adviser.
“The advice space is at a point of evolution - there is opportunity to be gained in this change,” added a.i's chief executive, Jacqui Henderson.