With increasing signs of convergence between the financial advice and mortgage sectors and a proliferation of multi-service firms emerging, FPA chief executive Mark Rantall told InvestorDaily he is encouraged but cautious about the influx of new blood.
“There are more financial planners retiring than entering the profession, so we do need a new generation coming through and we welcome that,” Mr Rantall said.
“Financial planning needs more new entrants and it’s great to see new entrants coming from all walks of life, but what’s important is that people moving into financial planning aren’t viewing RG146 as the requisite for providing competent and holistic financial planning advice.
“We encourage people to move into the profession, which would require certification – so going through the Certified Financial Planner program, which also means a degree minimum and understanding and agreeing to the codes of conduct.”
The industry lobbyist said he had concerns that some of the practitioners from other sectors entering the planning market may be using the term ‘financial planning’ in a loose or misleading fashion.
“There are a lot of people who call themselves investment advisers, financial advisers or financial planners, right from the property sector to the mortgage broking sector to the full advice sector – which I think can be very confusing for consumers,” Mr Rantall said.
“To be honest, if you are providing limited or scaled advice such as recommending risk products, then that’s not really financial planning advice.”
Mr Rantall reiterated the FPA’s position on the need for the term to be enshrined in corporations law.
The comments come off the back of a survey of mortgage brokers under the age of 30, conducted by InvestorDaily's sister publication The Adviser, in which it became clear there has been a marked increase in the number of young brokers offering advice services.
