Industry

The industry’s struggle to identify new talent is likely to continue, but the outflow of advisers has slowed considerably. And there are plans to source talent from other corners, according to the FAAA.

It was a year that saw private capital become cool and asset consultants become kings. Advice reform continued to plod its clunky path, while the Dixon’s scandal lingered through the much-derided CSLR program. Through it all, surging demand and resilient investment markets fuelled a robust year for advisers, with their businesses streaking ahead of licensees in terms of profitability and value.

Clients are infinitely more informed in the digital age, but that doesn’t necessarily mean they know how to discern the useful information from the misleading. Addressing this divide is the role advisers will need to embrace as the new era unfolds.

The government’s plan to offer more flexibility around simple and scoped advice dovetails well with the advice format consumers prefer, according to new research from Investment Trends.

“I wish I could say this is an isolated example,” Kirkland said, explaining the regulator’s concern about a small cohort of advisers who transfer client funds into high-risk investments after being referred by cold-calling telemarketers.

The industry has little chance of fighting through the legislative backlog and getting immediate wholesale change made to the ill-designed CSLR. There are things the government can do in the interim, said the FAAA, but who’s listening?

The likely advent of a new class of ‘simple’ advice providers will reshape the industry ecosystem. According to FAAA members, there are four key issues that need addressing before this key reform is implemented.

Consumer trust isn’t something to be taken for granted, but reports from the UK, US and here at home are all pointing towards an uplift in trust levels around financial advice, which can only be a welcome development.

There are significant tailwinds behind the financial advice industry at the moment, but some major obstacles are still preventing advice practices from taking advantage of surging demand according to a new study from CFS.

As part of the strategic partnership, Indian CFP aspirants will have a pathway to gain qualifications that meet the Australian regulatory framework. It’s a bold plan, but one that could help shore up adviser numbers according to the FAAA.

The move from Viridian and CFS to provide personal advice in a scaled manner highlights a growing willingness within the industry to fix its own problems in lieu of waiting for the government.

The amount of complaints against advisers that reach AFCA has plummeted in the authority’s five years of operation, and it’s not just falling adviser numbers that are contributing to the improvement in consumer satisfaction.