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.
Comments
makes sense to me, no more soa's, no more file notes, no more FDS's - just coach the client and allow them to go out and do it themselves, and then have them come back for a reporting update/ progress discussion every 12 months. Sounds great.
Money coaches, real estate agents, accountants, book authors, property consultants, journalists, roboadvice managers, workplace superannuation educators, mortgage brokers, union fund call centre operators.
All these occupations have been allowed to provide personal financial advice with minimal regulation, disclosure or education requirements. All are likely to attract formerly licensed financial advisers squeezed out by excessive regulation.
Why would anyone want to waste time with these FASEA requirements when all these financial products are able to be "recommended" and sold by unregulated and uneducated sales people who have had 2 hours training under the guise of General Advice.
Dont bother studying. The idiots making the rules are allowing backpackers to continue to sell the same financial products as advisers. You will save 2 years of your life by not going back to university. But more importantly you will save thousands of hours as you no longer have to produce SOA's or act in the best interests of customers. As its only general advice you are providing the client will have no recourse to sue you if something goes wrong (saving you even more time dealing with complaints and litigation). You will be able to cut youyr support staff as the compliance burden is reduced and you will no longer need a dealer group to make sure you are complying with the rules as there arent any rules for General Advice "advisers'.
And you can still charge the same for investment advice and recieve commissions for insurances.
What a pity that the client will be left at the whim of the insurers at claim time.
If the regulators want to ruin our industry then we may as well play by the same rules as the big end of town who only care about short term profits at the expense of everything else.
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