In today's financial climate, Australia's young advisers are finding themselves in a precarious position.
While many have sat in lecture halls listening to industry veterans talk about their own experiences of past stock market crashes, today's young advisers have no experiences to share.
It is only now, for the very first time, that these young advisers are out in the trenches, experiencing first hand the worst financial downturn of our time.
Young advisers are facing greater scrutiny in their professional lives, with clients asking more questions than ever before as they also struggle with the impact of the global financial crisis (GFC).
Thirty-one-year-old Financial Design for Life managing director Chris Browne says the GFC is producing obstacles for advisers of all ages, but also offers opportunities for advisers to differentiate themselves.
"For young advisers to achieve their objectives in the current climate, we need unity within the industry, as well as leadership and avenues to network with other advisers," Browne says.
"At the moment we're seeing numerous articles which are sledging financial advice and financial planners due to situations such as Storm, Westpoint, Timbercorp and Great Southern, but what's more important is that regardless of how many advisers are doing the right thing, these stories about a small few will have a long-term impact on our industry.
"Since the GFC, it seems people everywhere, whether they're inside or outside the industry, are sledging each other and I think we in the advice space must stand together if we are to overcome present conditions."
A greater alliance between the FPA and the Association of Financial Advisers (AFA) would set a good example for the industry, Browne says.
"At times the FPA and AFA are at loggerheads and I really believe that at the end of the day what the financial planning industry needs, particularly in uncertain times, is unity.
"Arguments about fees versus commissions, for example, are important agenda items but the delivery and means of debating such issues could be improved.
"Personally, I'd like to see the AFA and the FPA become the one body. I think that both associations have very unique qualities, and if combined, could leverage off each other's strengths and offer the industry even more value."
Similarly, for 28-year-old WealthMap Financial Strategies financial adviser Sarah Riegelhuth, one thing that does weigh on her mind in the current market is the media.
"Advisers and people that are doing the wrong thing do need to be exposed, but for those ethical and passionate advisers that are left, we must fight back against that image," she says.
"We need to figure out how to get the good stories out there because we're not all a bunch of crooks. We've chosen this industry because we want to help people through the good times and the bad, and I believe a little more unity between financial planning associations could also help this cause.
"Part of me wishes that the industry associations could focus more on working together for the same purpose rather than worrying about who can give advice and who can't, and how to charge for it.
"There are constant divides in opinions and there is so much talk going on, but at the end of the day everyone should just be doing right by their clients.
"I know the associations agree with this, but I just don't like how they bag each other out as it's not a really positive way to have their opinions heard."
Riegelhuth started working as an adviser in January last year, following a stint with her current dealer group Synchron.
She says she has dealt with the GFC by increasing her knowledge and awareness of current impacts and past changes in the industry.
"I think the big thing as a young adviser is trying to remain positive and remembering that according to all the history books, things have always gotten better," Reigelhuth says.
Now is an opportune time for young advisers to learn and give their clients reassurance.
"With a lot of stories about the GFC in the media, there has been greater interest from clients and a lot more questions too, particularly from pre-retirees and retirees who are obviously going to be a bit more nervous," Reigelhuth says.
Working alongside her father, Riegelhuth is able to tap into the expertise of a more experienced adviser who has seen past market fluctuations. He is able to give older clients greater confidence and teach the firm's younger advisers how to have those difficult conversations.
"Clients generally just want confirmation that their strategy is the right one and if changes are to be made that they understand what these are," Reigelhuth says.
"Apart from face-to-face communication, we're providing clients with graphs, charts and illustrations on things like 100 years of the stock market to make sure that they understand the history as well as present conditions.
"We've also split our client base into five different segments so we can send clients more specific information regarding their individual situations and tailor seminars more closely."
Riegelhuth says being able to bounce ideas off colleagues and getting involved in peer groups are great ways to learn outside of standard training and certification programs.
"I'm part of a women's networking group for young female business owners as well as an independent peer group of five advisers and I participate in Synchron's NextGen conferences," she says.
"You build soft skills, sales skills and team-building skills, and also get to meet lots of new people in the industry. In fact, meeting people at the NextGen conference is how we built our independent peer group.
"These networks have helped me generate new ideas and create new support teams and I think they're really valuable for my career."
Involvement in networking groups is also valuable for 32-year-old MKJ Financial Services principal and adviser Cameron McAusland.
"I'm involved with the FPA and with a peer adviser group that I meet with every six months for an event where we will also invite an industry speaker to give a presentation," he says.
"It's a great way to tap into new ideas and hear different perspectives."
McAusland believes however bad the ramifications of the GFC, the main focus for young advisers should be to build trust with clients.
"Let them know that you'll still be here for another 30-odd years, through the ups and the downs," McAusland says.
"Teach clients about market fluctuations, help them understand how the current situation occurred and the strategies that are in place to assist them in their wealth creation."
McAusland, who started as a financial adviser in the industry in 2005 following four years in corporate superannuation, says he's been managing the GFC by reading almost everything he can get his hands on.
"It's important you're up to date on everything in case a client rings with a question," he says.
"I've increased email traffic and more importantly contact with clients, which I've done by going out and seeing them or hitting the phones as much as possible.
"I've been sending clients the positive and negative articles about market conditions so that they're not only informed but so that they can get a balanced perspective about what's going on too.
"In the current market, clients are looking for advisers who are willing to get in front of them, have the necessary conversations, ensure things are well positioned and that clients understand what their advisers are talking about."
McAusland says he has made himself available at night, on the weekends and has even travelled to clients' homes.
"The current market is hard work and while I've never seen anything like it, I'm a big believer in learning from experience and believe that now is the time to do it," he says.
McAusland's dealer group, Apogee Financial Planning, has also been very helpful amid the current market climate.
"Apogee has provided me with lots of useful information, including investment news, updates and webcasts that I've been able to share with my clients," he says.
"What has really impressed me about Apogee is that not only have I stepped up communications with my clients since the GFC, Apogee has also stepped up its communications with me.
"People at Apogee are always contactable and I'm always pleased with their response.
"Communication is not a one-way street and involvement from dealer groups is an essential part of an adviser's job."
Strong leadership and communication between associations, dealer groups, advisers and clients is vital right now, McAusland says.
"A large majority of advisers will exit the industry in the next decade and no doubt the GFC has impacted many of their plans. From a young adviser's point of view this will provide an opportunity to grow our businesses, however, support and communication will play a key role," he says.
Twenty-seven-year-old National Australia Bank (NAB) financial planning wealth manager Hannah Bush, who has been in the industry for two years, says the current environment has been difficult, particularly for younger advisers dealing with pre-retirees and retirees.
"NAB introduced a program based on building our soft skills, which has been useful in this aspect," Bush says.
"You need the technical skills but you need the soft skills so you can talk to people, deal with different personalities and identify how you can best teach different clients so they can learn and retain information well.
"The current market is tough, but the key to this job is adapting to changing circumstances, because like the markets things are always changing."
The youngest adviser in her team at NAB, Bush says having older planners in the business has been of great value.
"They have the experience, they've had the difficult conversations, they've seen the markets go down and bounce back and it's great to be able to tap into that knowledge," she says.
FPA chief executive Jo-Anne Bloch says like all advisers, young advisers have been extremely active focusing on clients amid the GFC.
"They're busy and they know the importance of educating and communicating with clients and providing that reassurance," Bloch says.
"One of the benefits for young advisers in the current market is they're getting great experience, building their skill sets and are getting more opportunities to engage with clients and talk with them about their future strategies."
Now is a good time to develop relationships with clients and within the industry and even look for a coach or mentor, Bloch says.
"Standing out in this environment is determined by an adviser's ability to develop good, strong, deep relationships," she says.
"Providing advice is about more than investment performance - it's about long-term goals. So relationships must be strategic and comprehensive because clients have a range of needs.
"We're still getting significant traffic in terms of media but advisers shouldn't be too concerned with this negativity as that will eventually move away.
"Relationships have been put under pressure but the financial planners that have confronted issues, kept up regular communication and reassured their clients are the ones who will weather the storm successfully.
"Younger financial planners are being exposed right now, but at some point in the future this will happen again as these things always do and now is a lesson that what goes up does eventually come down.
"Our advice to all financial planners is to bond with your clients - over service, over communicate and over engage with them."
AFA president and Taggart Group managing director Jim Taggart, who has been in the industry since 1987, says the key for young advisers in the current climate is to build in-depth relationships with clients.
"Communication is always a key part of any adviser/client relationship, but particularly when times are tough, face-to-face contact is vital and is what clients demand," Taggart says.
Qualifications and education are as important as building relationships and rapport, he says.
"Young advisers tend to have excellent tertiary qualifications, however, what's important is that they have access to learning about engagement as well," Taggart says.
"The current market is posing lots of difficult conversations, such as not having the money people thought they'd have to retire with, and in some cases people's strategies need to be changed.
"That's why it's important young advisers have the soft skills, so they can explain this to their clients, help them understand what's going on and foster trusting relationships.
"At the end of the day, aside from technical expertise, the advice industry is about relationships and breaking down complex phenomena."
With more information being filtered through the media, clients are more financially astute and are asking more questions, Taggart says.
"They want to know advisers have the knowledge but also the ability to explain it," he says.
"They're more proactive and want to feel comfortable about the strategies that are in place.
"With clients scrutinising products and services more than ever before, advisers must be there to answer questions, meet with clients and take their calls."
In times of crisis clients need information given to them quickly and accurately, Taggart says.
"I think most advisers to an extent are worried about the GFC because we've never been in such a catastrophic position, and particularly for younger advisers, they've never experienced anything like it," he says.
"From my experience dealing in uncertain times always means more work, but if you can't be bothered doing the hard yards, I'd say get out of the profession. You're dealing with people, their emotions and their future. You need to respect that as an adviser. You've got to contact people, tell them what's going on, how it's affecting their investments and arrange a time to discuss how markets are impacting their situation.
"Having all the information in the world is great but if you deliver poor service it just won't cut it. Clients want to hear things directly from their adviser and be taken through the complex issues.
"Pretty much anyone can steer a ship in calm waters. It's not until the sea becomes rocky that you know the quality of your captain."
Browne says if young advisers are to navigate their way through present conditions, it isn't just what the industry can do for them but what young advisers can do for themselves.
"The first focus for any adviser in the current climate has to be their clients," he says.
"Current market conditions are leading to some difficult conversations but I really do believe that advisers who can step up to the plate now will be the ones who come out on top.
"Young advisers, like those who have been in the industry a long time, must get on the front foot, talk to clients, hold their hands, reassure them and empathise with them."
Browne says sitting with clients never goes unappreciated.
"It sounds fluffy but if a client's retirement plans have been put back five years, the graphs, information and newsletters are validation for the strategy that has been chosen, but it's the sitting face to face and doing the ad hoc phone calls that clients really value," he says.
"Teaching clients about the history of fluctuating markets, ensuring that the strategies devised for their situations are relevant and letting them know you're in it together gives them faith."
Financial Design for Life staff are relatively young, but Browne says feedback from clients has remained positive and that principals shouldn't have any reservation about putting on younger advisers.
Bush says spending time and building relationships with clients is the most vital thing to do.
"They want more information, and while advisers are very busy, it's a prime time to talk with clients, build rapport and tell them that together you'll get through it," she says.
"Use these times to differentiate yourself as a planner. Use your meetings as an opportunity to get our there and tell your clients the good stories.Counteract the bad stuff they're hearing in the media by telling them the stories you are aware of.
"Clients just want to know what's going on, that their adviser is being proactive and that they know the facts - good or bad."
Browne says next to client communication, participation in adviser networks and associations is important for younger advisers and involvement was becoming increasingly popular.
"A lot of younger advisers have really good technical skills and are tapped into good training programs. However, when it comes to building soft skills, networking opportunities, whether through associations, dealer groups or via their own doing, are extremely valuable," he says.
"There are a couple of networking groups that I'm a part of and I'm also involved with the AFA.
"It's a great way to tap into the ideas of new and experienced advisers."
Taggart says the AFA's GenXt program, which is targeted at young and new advisers, provides key networking opportunities as does its mentoring program, Secrets of Success (SOS).
"The SOS program is a great initiative linking the old world and the new and ensuring the knowledge of those that have been in the industry for 30-odd years can pass on their experiences to the next wave of advisers," Taggart says.
From an industry perspective, Taggart says more roundtable discussions about current issues between industry associations would be beneficial, as all discussions are a healthy way to analyse and reflect on potential changes.
The FPA, which runs educational and networking events for young planners, can also link younger people in the industry with mentors, which is something Bloch says the FPA wants to give more focus to.
Browne says some of his peers who have been questioning the issues that have arisen from the GFC have been able to find answers and clarity through these association and peer group networks.
"It's important young advisers concentrate on getting involved in associations and making sure they have a voice in this industry," Browne says.
"There is new legislation being passed, rule changes and debates about remuneration. The decisions that are made now will impact us for the next 30-odd years, which is why our opinions on these matters are so important.
"Young advisers have absolutely got an obligation to be proactive and make our voices heard.
"Economists have said that the current financial crisis is a once in a lifetime event and whether it is or it isn't, if young advisers get through it, they'll certainly come out better on the other end."
Riegelhuth says getting involved in the industry really is important.
"There are a lot of opportunities and initiatives out there which enable young advisers to get involved in the industry and have their voices heard," she says.
"I think it's vital that we're part of the decision-making process and the committees that will affect our industry and careers now and in the future."
For Bush, being involved with the FPA Sydney chapter and subcommittee, as well as establishing a young wealth manager committee at NAB, has helped her cover all bases.
"These networks are absolutely invaluable. My communication skills have improved and now I know advisers from all walks of life who can help me with any challenge," she says.
Getting out there, building relationships and getting involved are the priorities.
"Young advisers still have a long way to go in this industry so we must look to associations, institutions, our dealer groups and various networks to support our ideas and opinions, and where there are no opportunities we must create them for ourselves," Bush says.
Only time will tell how the next generation of advisers will tackle the market today and heading into the future. The only hope is that they continue to pass on the skills they learn to the next generation of advisers to come.
