With the new financial year well and truly upon us, many will be looking at our industry to see how the Future of Financial Advice (FoFA) legislation impacts on individual practices and whether it translates into an evolution or revolution in the way in which advice is offered.
Of all the industries that should be able to manage and thrive in a changing environment, it is the advice industry. After all, our industry is all about developing strategies and planning for the financial needs of our clients in a dynamic context.
We are a future-focused industry; now is our time to apply our skills and knowledge to our number one client – US.
Being an optimist at heart, I see enormous opportunity in what lies ahead. For the majority of advisers, the next few years will be a time of reinvention – reinventing what it means to be a financial adviser and becoming an even more vital part of our clients’ lives.
Those businesses who will continue to be successful are those who maintain their focus on their customer, by offering quality and reliable service and advice. To do so, advisers will need to gain an even deeper appreciation and understanding of the needs of our clients and be able to provide a response which is flexible and comprehensive in the solutions offered to meet those needs.
The successful adviser of the future may need to branch out to other areas, such as aged care, risk management, life cycle planning and coaching. It also means that maintaining close relationships with accountants and brokers will be important, so that a good system of referrals is built and maintained.
For some, this may require not only a change in our systems and processes, but also a change in mindset. This provides a unique opportunity to repaint the canvas about what it means to be a financial adviser.
In my view, those who seize the opportunity and grow their businesses will be the ones who are able to offer a more holistic solution in the best interests of their clients.
A great adviser is one who has chosen this career because of the ability it offers to have a positive impact on the lives of everyday people. I am obviously biased, but I am firmly of the view that non-aligned advisers and dealer groups will be able to adapt more easily than those which are tied to institutions.
Non-aligned advisers are better placed to offer independent advice not constrained by product options and platforms and truly act in the best interests of their clients.
Ultimately, as much as things may evolve, the fundamentals will stay the same – a real and demonstrated focus on the customer will continue to remain the key ingredient for any successful business.
John de Zwart is the Chief Executive Officer of Professional Investment Services.
