Disappearing advisers is half the story

Vanessa Stoykov,  creator,  No More Practice

I always enjoy reading the latest reports from Adviser Ratings. They have their finger on the pulse when it comes to movement in the advice industry.

This quarter in their Musical Chairs report, it stated that a net of 698 advisers left the industry between June and September 2019.

This makes a total of 3,400 advisers to leave in the first nine months of this year (which equates to about 13% of the industry).           

It’s a lot and it’s not unexpected. I guess, equally, the number of advisers joining the profession over the last quarter was not entirely unexpected either. There were 10. Just 10 people who entered a profession that most likely will be one of the most in-demand over the coming 20 years, as baby boomers hand over their wealth to the next generation.

On the one hand, you could say that these new advisers are going to clean up. They will have immense opportunity and only be limited by the amount of clients they are able to serve. It also says that advisers who are choosing to remain in the industry will do very well once the education standards and regulatory changes start to become reality and they move past them.

It’s going to be a profession that will never run out of opportunity.

In a world where we all want our children to grow up and into professions where they can thrive, the big challenge is to get parents and teachers talking about the prospect of school leavers choosing financial planning as a dedicated profession – as opposed to straight commerce.

At the moment, it’s not a profession like law or medicine where parents would always point to as being in-demand, even though it is. It’s also not a tech profession, which is where so many students are now going. But financial planning is incredibly important to the future.

I think because so many people identify themselves as a “type” that the financial planning industry needs to start demonstrating what the attributes are of successful advisers.

In my experience, these are the attributes of great advisers:

  • Great with people
  • Value relationships
  • Technical but able to explain concepts in layman’s terms
  • Don’t want to be in an office 24/7
  • Enjoy making a difference and helping
  • Want to be financially successful

If people grasped this as a typical planner profile, perhaps we would have more candidates entering the industry – in time to start replacing so many who continue to leave.

As an existing adviser, you can go about describing these attributes to people you meet, the press and your own social media. The more we start to describe the planner of 2020 and beyond, the benefits will become twofold: more students will choose a dedicated career in financial planning and be excited about it, and more people will feel comfortable identifying an adviser they want to work with and see the value.

It’s a win-win.


The opinions expressed in this content are those of the author shown, and do not necessarily represent those of No More Practice Education Pty Ltd or its related entities. All content is intended for a professional financial adviser audience only and does not constitute financial advice. To view our full terms and conditions, click here.

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Alistair Koh

07/11/19

Its great to evoke such an outlook when you are a journalist. Imagine if you had people making decisions about your life, but not allowing you or your industry association to have a say in your outcome. Imagine if you know of sotries of fellow advisers in a state of despiar having their lives ruined and all for doing the right thing by consumers without harm. Imagine if those making the decisions are doing so without anything but an ideology behind their actions. Advisers have had to endure this as are the taxpayers of the nation constantly being attacked via their pension entitlements or their jobs made insecure as the government of the day drives ALL towards the large corporations of Australia an around the world. Such is the state of our economic and fiscal outlook. Now to attack advice is the final leg. To disempower individuals by making advice accessible but unaffordable to most. Your commentary leaves one to think that the future student becoming a prized planner will be what dreams are made of. Of course you need to be asleep to realise this.

johnny Johnny Farquar

07/11/19

Polititions Insurance companies and banks have destroyed the Financial Adviser. With BAD and unreasonable decisions over the past 15 years. After 20 years as an Adviser and holder of a business Degree from University of Queensland I now have to do another University degree what a load of bullshit . At age 50 I am expected to study for 3 years, I dont see another industry in Australia that is required by Government to do so, nor have I ever seen something so rediculous in this country before. Who are these clowns making these stupid decisions???? What planet are they on??? or which bank are they working for? THIS IS NOT FAIR NOR REASONABLE Advisers have reduced commission from 110% to 60% to enable the insurers to get richer - The rich taking from the poor. All I see is politicians and insurers passing around paper bags full of money to each other. This Country has become more and more corrupt. Advisers are getting milked just like the cows which dairy farmers own and this is due to poor governance and the crap politicians we have in Australia at present. Clowns destroying another industry in Australia which if people are not insured will only put more pressure on the NDIS which is not working at present. So instead of insurance held by people personally the government will ultimately pay as less people are insured. Now these are Real smart people in government are they really helping the Australian people ??? How many more industries are going to be destroyed because of our politcians that cant come up with nor find a solution that works for the industry not just big profits for the insurers at the expense of Australian people?

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