Practice makes perfect as advisers strive for growth

Almost a year since the introduction of the Financial Services Reform (FSR), the majority of financial advisers still believe that sorting out practice management issues will be critical to the future success of their business.

In a sign that the increased compliance burden resulting from the FSR is still a significant concern, a new survey has found 90 per cent of advisers believe practice management remains a “very important” issue for planning businesses.

The survey, conducted by the National Australia Bank’s financial planning arm, MLC Advice Solutions, was based on phone interviews with 600 non aligned advisers from around the country.

MLC national manager John Pennington said tougher regulatory scrutiny of financial planners had changed the landscape of the profession.

“The financial planning industry is changing faster than ever before with complex regulations, increased public scrutiny and tougher competition,” he said.

However, the survey also found advisers were interested in practice management not only as a defensive strategy to combat growing regulatory pressures, but also as a means to boost profitability.

The three areas of practice management nominated as most critical by advisers where: how to effectively sell advice; how to increase referrals; and how to boosting revenue from risk, estate planning a debt services.

“These hot spots reflect the challenges facing advisers today with advisers looking for new ways to grow their business,” Pennington said.