- No (44%)
- Yes (34%)
- Not sure yet (21%)
The outcome of our latest poll suggests the financial advice sector may witness a significant exodus of advisers in the countdown to the implementation of FASEA’s education requirements (see: FASEA Finalises Education Pathways…).
As you can see from the poll response, almost two in three advisers have indicated they are either not committed to completing one of FASEA’s education pathways (43%) or aren’t sure (21%). Only 36% of our predominantly adviser audience has indicated their commitment to one of FASEA’s education pathway options.
This result raises more questions than it answers – and we’re inclined to conclude that a gloomy fog of uncertainty is presently shrouding the thoughts of a serious proportion of advisers and advice businesses in this country when it comes to their vision for the future of their business and for their continued livelihood. We sense there’s ‘trouble at mill’ for many dedicated and passionate advisers, who simply can’t see a light at the end of the tunnel at the moment.
What does this poll result mean for the advice sector and for the consumer – and what do FASEA’s education pathway options mean for you and for your business?
Understandably, the comments we’ve received have been made by those who are challenged by FASEA’s final education pathways options, where the consequences – unintended or otherwise, according to these comments include:
- Exacerbation of the existing underinsurance dilemma
- A loss of jobs in the advice and broader financial services sector
- The potential collapse of the value of advice businesses
- The financial impost in order to eventually achieve FASEA accreditation
- The additional time impost that will be applied to each adviser and advice business – some more than others
Additional comments that appear to capture the mood of the meeting in what is effectively now a transition period to a new advice environment include:
…It amazes me that I have met the requirements as requested all the way along and have gained invaluable experience for my clients only to be told the rules are changing
“So on 31 December 2023 I’ll be fine to talk to someone about their life insurance. It will be a similar conversation to those I will have had countless times over the preceding 44 years. But if I continue the conversation the next day I’ll be (I presume) breaking the law and liable to pay a substantial fine or perhaps even serve jail time? But the 23 year-old who’s never actually spoken to a client (but has lots of book learning about unrelated subjects) is ok to go ahead and give advice?”
And this:
“Having started my financial career as an investment banker in 1985, then as a stock broker from 1998 and a financial planner since 2001, that all my experience is only worth 2 Credits. It amazes me that I have met the requirements as requested all the way along and have gained invaluable experience for my clients only to be told the rules are changing and you are out of a job unless you spend a huge amount of hours studying and doing exams that have been written by educators who have little or no real world experience…”
The future is uncertain for many advisers and their businesses. We’ll continue to report further developments as they unfold, as our poll remains open for another week if you’d like to add your voice to this issue…
The destruction of an industry by people who receive their income from other sources. Shameful and we “ well meaning and naive “ advisers let it happen.
For evil to triumph good people need only to do nothing.
In some professions, the persons ability to do the tasks pertaining to their job can
become unattainable or unworkable.
Such as a surgeon with a shaky hand, or a bricklayer whose body is unable to cope with the physical demands.
However, the provision of advice around Life Insurance is not one of them.
The reason we are in this mess, is because our representative bodies and the Life
Companies did not clearly articulate the REAL issues and put in simple measures
to fix them, right from the start.
Instead, opinions were sought from every source, with most of them ill-informed and short sighted.
Ridiculous strategies were implemented that did not fix, though rather exacerbated the Industries problems, which simply put, are rising premiums leading to more lapses, with red tape to further complicate things caused by Lawyers who have seized control of the way Life Insurance is sold and administered.
In all my 3 decades of advising and trying to run my practice, I have never seen it
worse than now.
Virtually every measure the regulators and complicent Life Companies have instigated,
have only made matters worse.
There is a lack of commercial sense and a lack of practical experience at the very top
of the life insurance industry, the regulators and in Government.
We are now living in a ANTI-BUSINESS environment and the small to medium private
business sector is being squeezed out.
The main purpose of Government should be to protect its citizens and Businesses from
unscrupulous and or stupid public servants, large corporations and Lawyers.
These 3 areas cause most of the confusion and destruction of Business viability and the ability for Australia to get ahead.
I could go on but I will stop now, as I need to continue trying to rescue my Business.
Coudn’t have said it better Jeremy….bravo. I’m feeling the same way.
FASEA and the Government are kidding themselves and everyone in this industry if they believe their reforms and these ridiculous new education requirements are going to fix everything. While humans are involved – it is IMPOSSIBLE to do that as ethical standards, backgrounds and financial motivators vary way too much to EVER do that.
But the way they’ve gone about this has been to the absolute detriment of the industry, not to its betterment. I have zero faith in the integrity of the people making these decisions and are 100% convinced they too are conflicted and have been corrupted by the very dollar, they preach they’re trying to prevent advisers from becoming slaves to.
Feeling very comforted and relieved now that I’ll be leaving this industry after 11 years of proud services to my clients. Its just a matter of when now…
After 43 years in the LIFE INSURANCE industry I will be handing in my AR and ending 30+ years as an ‘risk insurance adviser’ on 30 June 2019. Like an old horse, why wait until 31/12/2020 to be put out to pasture? I have a substantial source of client referrals which will go to fellow ARs of my current Licensee. My existing clients [a few of 30 years duration] will be serviced by a good, reputable and professional younger adviser – who entered our industry 7-8 years ago. He will ‘pick my brain’ from time to time as he readily admits he has only a modicum of the knowledge I have accumulated over 4+ decades. It’s sad time, but as once said – you cannot fight city hall. They also say you can’t teach an old dog new tricks. But how long will it take to teach a new dog…?
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