In 2006, the market considerably increased its expectations of the financial planning industry, with its future success dependant on how it responds to challenges, according to Michael Guggenheimer, managing director, AMP Financial Planning.
Guggenheimer said debate within the industry around issues like juggling the need for high levels of quality advice against managing the cost to serve, show just how important it is to manage change well.
Even AMP Financial Planning, which has been a part of the Australian financial services landscape for many years, has been forced to constantly adapt to remain compliant and relevant to its market.
“AMP Financial Planning has embarked on its program of change with the enforceable undertaking agreed to with ASIC [Australian Securities and Investments Commission] earlier this year,” Guggenheimer said.
He also said the quality of the industry’s response to the need for change would determine how those within it continue the journey towards professionalism.
“Education standards among financial planners are important.”
Many within the industry in recent years have cited the difficulties in finding and retaining talented staff, and AMP is one of the larger groups that has adopted a ‘grow your own’ approach to building a skilled and experienced financial planning dealer group.
“There is also competition for talent and resources and we are keen to ensure we are attracting more skilled and experienced people into our ranks to also support our growth ambitions and also many of those in the industry,” Guggenheimer said.
The raft of new legislative changes in the areas of superannuation and retirement has also posed a significant challenge to individuals that must be met by the financial planning industry.
“The need for advice from professional financial planners is more important than ever.
“Changing retirement income policy and the steady evolution in Australians’ attitudes towards self-sufficiency in retirement will increase the need for high quality advice much earlier in the client’s accumulation phase.
“I believe there has never been a time when there were so many opportunities available to secure the future of financial planning as a profession,” Guggenheimer said.
“Future planners will look back on this time of change and judge us on how we responded.”
— Glenn Freeman
