Recent surveying undertaken by Money Management has revealed that upwards of 30 per cent of financial planners intend to depart the industry because of an end to grandfathering and the Financial Adviser Standards and Ethics Authority regime, but will a change of Government make any difference?
The Australian Labor Party has foreshadowed a range of policy changes with respect to franking credits, negative gearing and family trusts while signalling that it will be implementing many of the recommendations of the Royal Commission but few other changes directly impacting financial advisers.
Money Management therefore wants to know what you think. Will an ALP victory on 18 May influence your decisions about your future in the industry?
Please complete this short survey and let us know what you think?
Comments
Accelerate? No. Confirm decision to depart - yes.
I think you're way off the mark.
My prediction is that more than 70.0% will leave Financial Panning/Risk Advice business within 18 months as a result of the legislative changes made to the industry (viz LIF, FASEA and the termination of grand fathering payments.)
Aleycat I tend to agree with you. Trouble is employed financial planners have no idea yet but may find word on the phones at industry super - who Hedware believes give good conflicted advice all in the best interest of the industry fund.
@ Dark,
At a recent presentation it was mooted by one organisation that good practices could get a multiple of 2 x recurring revenue.
I think that's also a myth.
I believe that most practices wanting to exit will be lucky to get better than 0.35c in $.
The reason being that only those cashed up will be able to buy because most institutions won't lend, to buy a practice now.
It was reported a couple of weeks ago that there were 6 sellers for every 1 buyer.
I think that figure is seriously understated, and believe the ratio of sellers is much higher.
It was also reported that for the first 2 months of the year only 4 advisers were registered on the ASIC website as new advisers.
What graduate will want to enter the profession knowing that he has to be mentored for at least 12 months before they can be let loose on a client ? Who will want to pay them a salary that they will accept for virtually no productivity, for a year ?
There will be no guarantee new entrants will have the most important ingredient required for a financial planner. That's the ability to engage all types of clients and understand why they are seeking advice and have to ability to communicate with them in a way so they understand and accept meaningful solutions that allow everyone connected with that process, to sleep well at night .
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