Australia’s financial planning sector has been hard done by when it comes to its progress in becoming a recognised profession.
For too long there has been too much attention on how the industry can make the leap to a professional standing and not enough focus on leadership at the coalface.
Over the years I have witnessed many advisers grapple with more pressing matters than the concept of professionalism.
For some advisers, the struggles remain tied to the global financial crisis, with the legacy of the economic downturn cooling new business and fracturing practice succession plans.
For others, the issues have centred on more basic business activities, with the expenses of running a business, meeting compliance, insurance and technology costs, as well as paying staff wages crippling some.
For some time, the advice industry slipped into an awkward limbo state with rumbles that licensees had given little support to their advisers felt across the market.
It would be easy for licensees to blame the federal government’s overhaul of the financial services industry under its Future of Financial Advice (FoFA) reforms as a key distraction, though, for many, the introduction of FoFA and other regulation is by no means a new challenge.
Now it is unfair to suggest there are no licensees in the market showing support to their advisers; this is, of course, far from the truth. However, encouraging a greater unified effort by licensees to provide leadership could only better the overall standings of the industry.
A number of white papers released over the years have focused on clients and what they want from their advisers.
This is, of course, crucial from a relationship and business perspective, however, what about the advisers? Who is looking after them?
In March, the Association of Financial Advisers released the paper “New frontiers – the age of consumers”. The paper explored, among other things, what clients are looking for from their financial advice experience.
The four main things a client is focused on are adviser qualities, practice services proposition, the advice process and the practice charging model.
Perhaps it’s time for licensees to turn their focus to their advisers and provide them with the leadership and support they require to help meet their client needs.
Let’s not lose sight of the fact that without qualified, well-supported, content advisers, fewer Australians will have access to quality financial advice.
Kate Kachor is the editor of financialobserver, a new online publication dedicated to financial services professionals. If you would like a free subscription to financialobserver’s daily newsletter, please subscribe here http://www.financialobserver.com.au/subscribe.
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