Post-FOFA identity crisis mobilising advisers
Many advisers are struggling to find their place in the post-Future of Financial Advice (FOFA) industry, leading to a surge in mergers and acquisitions (M&A) and early retirements.
Such is the analysis of Connect Financial Service Brokers CEO Paul Tynan, who stressed the reforms and the shifting dynamics in Australia should be seen as an opportunity, rather than a threat, to adviser progression.
He said opportunities abound with Australia's "fundamentally sound" economy and ageing population, but the key is to not be paralysed by irreversible changes to the profession.
"If we dwell on the past, maintain old structures /habits and not embrace change this future of opportunity will leave us behind in its wake," he said.
Tynan said he has received numerous M&A inquiries from advisers keen to capitalise on growth opportunities.
"The majority of these opportunities will be fulfilled by small business and as a result, Australia needs a new generation of entrepreneurs with spirit and determination to seize the moment and export our professional services and premium/green products demanded by this expanding middle class," he said.
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When it comes to M&A activity, the share of financial buyers such as private equity firms in Australia fell from 67 per cent to 12 per cent in the last financial year.
