“Qualified advisers”: it’s safe to say this title has left the advice industry fairly divided.
I think it’s safe to say that the name isn’t appropriate, considering everything the industry has done to build its reputation. However, I’m not entirely against the concept.
I’m sure we’ve all had those clients we really want to help but can’t because the cost to produce and implement the advice just isn’t feasible.
Having a basic, lower-cost alternative provided by super funds would help clients like this access much-needed advice – simple stuff – and wouldn’t serve as competition for our businesses. And let’s face it: a lot of super funds already have their own advice teams, anyway.
Obviously, the devil will be in the details. Clients will need to be made fully aware of the limitations to the advice/directions they receive – and there should be clear direction as to when they should consider a fully-licensed financial adviser.
On balance, though, I tend to agree with commentators out there who see this as a great opportunity for the industry to provide a training ground for new advisers.
Knowing that a large portion of our cohort is small business, and currently going through the PY process ourselves, I understand all too well the risk and time involved. So I think having the super funds and institutions training our new advisers with the basics and soft skills would really help provide a much bigger pool of talent.
I also think it’s a good pathway for new entrants to get a feel for the industry and ensure this is the career they really want. The last thing you want as a practice is to spend six-to-12 months training someone – only to find out it’s not their cup of tea.
There’s another potential benefit I don’t think has really been discussed: considering the value we provide and the complexity of what we do, it’s quite amazing how far behind our industry remains in terms of technology.
One would assume that if the number of advisers increase, so too will the demand for new technology and the level of funding available.
I’m interested to see how everyone here feels about this one. I’m not advocating for anything here, so please don’t crucify me if you’re against it! If you do feel differently, though, what are your thoughts on how we can address building the advice industry and getting basic advice to smaller clients?
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