2014: WHAT WE WILL REMEMBER
As we come to the final edition of No More Practice for 2014, I thought it worthwhile reflecting on the year that has been. It has been a mixed bag for our industry really.
Alex Burke
December 11, 2014
As we come to the final edition of No More Practice for 2014, I thought it worthwhile reflecting on the year that has been. It has been a mixed bag for our industry really.
We all have a ‘local’ when it comes to coffee. But what is it about your ‘local’ that keeps you coming back?
The increased level of knowledge of our clients has changed the way financial planners operate in today’s environment.
Information is now so freely available that we have seen the evolution of a new class of investor. Retirees, who for whatever reason be it boredom or a genuine interest, have decided that their new hobby is to become an investment/fund manager and take control of their own wealth management programs.
As I caught the train into the city a few weekends ago and walked through Flinders Street Station I was repeatedly struck by the diversity of the passengers around me and how, whilst we were all largely anonymous, we were easily identifiable with particular groups, clusters or “tribes” that were unique in their own way.
Managed Accounts are not new, they have existed in the US for many decades and have been spoken about and offered in various guises in Australia for the better part of 10 years.
The financial services industry has never experienced such rapid and extensive legislative, regulatory and market changes than those that have been thrust upon it over the past few years and which have resulted in the multitude of challenges being experienced by financial advisers today.
I don’t have to tell you costs are a big factor when running a financial planning business. I’d argue it’s why over 80 per cent of the industry are now shadowed under the wing of a bank or institution. Economies of scale are a great help in driving costs down, but if you’re focussed on your client you want to ensure it’s the client who is the primary beneficiary of cost efficiencies and no one else!
Time and time again, I’m approached by advice businesses that either have their own Australian Financial Services Licence (AFSL) or are looking to set one up.
The advent of FOFA now provides a public reference point to use when explaining to clients (and potential clients) how you’re one of the few who actually want to put their interests first and act as a true fiduciary.
It’s easy to get busy in the business but if you don’t take the time to work on the business you could be putting your brand, your reputation and the sustainability of your operation at risk.
No More Practice Education Pty Ltd
Level 1, 10 Shelley Street, Sydney NSW 2000
