Participants are constantly feeling the pressure to comment on the proposed changes that are about to hit, with some happy to share their views and others almost too tired to offer an opinion. Yet the general feeling is that everyone has an opinion.
At the end of many of the articles in this column, I ask for comment on the views expressed. Many of you have felt compelled to call or email with your comments. All are always appreciated.
It is one thing to be told by the industry bigwigs what their view is for the industry, yet it is another thing entirely to hear the concerns from those at the coalface.
Last week, an adviser (who shall remain nameless) emailed his views on the current state of the industry.
The adviser stated that the different policy views between Australia’s large political parties have never been more visible, with things like ‘choice’ and ‘consumer protection’ now morphing into a new landscape; a landscape he believes the Labor Party is designing.
“There are some democratic principles being ignored and a real lack of forward thinking from the [Financial Services and Superannuation] Minister [Bill Shorten] – this is also indicative of the Labor framework (What happened to their ideas? Currency floating, deregulation etc – that was good, competitive policy),” the adviser wrote.
He said the lack of consultation the government was undertaking in regard to its Future of Financial Advice (FOFA) reforms spoke volumes in terms of the direction FOFA would head.
The consequences of introducing such regulatory change would not only make advice and the experience of advice costly for the client, but there would be less vision and creativity in the profession, he said.
He said he believed such changes would mean independent financial advisers (IFA) would jump on the self-managed superannuation fund bandwagon as it was a key area of growth and would push advisers to become niche operators.
“There will always be a space for the IFA because we also specialise in relationships, flexibility and personalised service. This is what people want and education will be the bridge,” he said.
As well as believing there will be change for the client and individual advice, he agreed with the industry trend that if the reforms continued as they were, greater consolidation in the industry would continue.
What are your thoughts on the future of the industry? Like this adviser, do you feel such regulatory change will create a new landscape? Will it be better or will it be worse for you and your business?
