Search by:NameLocation
 
 

Media

In Brief: July Edition  

Do you have a good advice story?

Are you an adviser with a customer who'd like to tell their story how your advice helped them?

Are you a customer with a good story about how advice has added value to your life?

Tell us about it

The ‘Pincer Movement’ For Financial Advisers

« back to media

22 September, 2021 by Laura Dew, Money Management

Article link: https://www.moneymanagement.com.au/news/financial-planning/%E2%80%98pincer-movement%E2%80%99-financial-advisers

Financial advisers are facing a “pincer movement” from compliance and educational requirements, with “deeply concerning” numbers of advisers leaving the market.

Opening the Association of Financial Advisers (AFA) annual conference, chief executive, Helen Morgan-Banda, said the two forces were causing a negative effect on the industry.

“Advisers are being caught up in a pincer movement on the road to professionalism which needs to be addressed,” Morgan-Banda said.

“On the one hand, there is the ever-increasing compliance burden and associated costs. On the other, is the need to meet further educational requirements by the end of 2025.”

This was having the knock-on effect of causing experienced advisers to leave the industry because they were reluctant to meet the educational requirements, at the same time as fewer graduates were entering.

She said the number of departing advisers was “deeply concerning”, with 1,650 who had passed the Financial Adviser Standards and Ethics Authority (FASEA) having since left the industry.

“Graduates are not being attracted to financial advice as a career. The number of graduates entering the profession each year is tiny,” Morgan-Banda said.

“The professional year as it stands is difficult to sustain for either graduate or employer. Without change, there simply won’t be enough financial advisers to meet demand.”

Morgan-Banda called for a “reset” to the ever-growing regulation which would enable those consumers who sought advice to be able to receive it. Research by the AFA, IOOF and Adviser Ratings had found that Australians who received financial advice experienced higher financial wellbeing, more income in retirement, lower interest payments and enhanced net wealth.

“We need a reset in the regulatory agenda which properly balances the need to protect consumers with the need to reduce unnecessary and unproductive compliance activities so we can offer more Australians affordable, quality, financial advice,” Morgan-Banda said.

“The number of people who need advice is growing – we all need to work together to meet that need.”

Comments

No comments added.

Add comment

Name

Email

Comments

Enter code:*

Refresh code

Add comment

« back to media

Adviser Ratings

For consumers

For advisers

 
  Join as an Adviser
 

While we may facilitate the review and introduction of Advisers, Customers of Adviser Ratings will be responsible for entering into their own agreement with Advisers introduced through our website. Adviser Ratings does not provide personal financial advice nor do we recommend or suggest a particular adviser is right for you. We provide information of a general nature and we do not take into consideration your personal objectives, financial situation or needs. Always consider whether the advice and information you are provided suits your needs. Adviser Ratings does not endorse, accept or adopt the Advisers on our site, the content of any profiles or the comments or discussion in any community forums. For further information about How We Rate Our Advisers, click here. Per quote in our video, refer KPMG research undertaken for Financial Services Council

Adviser Ratings Pty Ltd (ABN 18 154 273 640 ) (AR 466730 ) is a Corporate Authorised Representative of IPraxis Pty Ltd (ABN 39 114 365 007) the holder of Australian Financial Services Licence No. 329337. We are a Sydney based company located at - Level 22, Tower 3, 300 Barangaroo Avenue, Sydney, NSW, 2000, Australia

© 2021 Adviser Ratings Pty LtdTerms of Use | Privacy | Contact