The return of the Labor Government to power is being seen by the vast majority of advisers as detrimental to the future growth prospects of their business.
Three in every four advisers taking part in our poll have indicated they believe the return of the Labor Government will have a significant negative impact on the future value of their practices.
As we go to print, a further 14% believe there will be a minor negative effect on their practice, which brings to 89% the proportion of advisers who see the Labor Government’s return in a negative light when it comes to their future livelihood.
Comments we received following the launch of our poll last week varied, but the consistent threads included:
- Dissatisfaction with the reform agenda generated by the Government following the fall-out from the Storm Financial disaster
- Objection to the perceived position of preference held by unions and industry funds in relation to Labor Government policy
- Objection to having Government legislate as to how an adviser should be paid
- Resolution that, in order to have their voices heard, advisers should be approaching the New South Wales and Queensland-based independent members of the House of Representatives to argue their case
Other feedback related to future remuneration concerns, but also concerns for a large number of Australians who advisers believe will receive little to no investment or insurance advice if they are required to pay a fee to access that advice.
At the same time, however, external consulting firms, dealer groups and financial institutions are gearing up to offer a range of transition services for advisers to assist in the move from commission to fee for service, and in a way that will continue to see clients receive the advice they need and in which advisers are appropriately rewarded for their services.
Do you see this future? Or do you believe the value of advice practices will indeed be negatively impacted by the proposed reforms stemming from recommendations made in the Ripoll, Cooper and Henry Reports?
Our poll remains open for you to have your say…
In my opinion the current reform agenda is politically and idealogically motivated and has been driven aggresively by the Industry Super Network. Unfortunately for Advisers we have received little support for the likes of the FPA who appear certainly under previous leadership at least to cave in to the Governments and ISN attacks. We need strong leadership to ensure common sense prevails .
I am currently transitioning from vehicle finance back to the risk and super industry. I can tell you from personal experience that when people are required to pay a service fee they no longer look toward getting advice and quite often even if you do see them and provide a service. THEY DON’T PAY!!!!!
Australian’s as a whole are not geared toward this kind of set up and realistically why should they have to be. This system works for all parties as is.
We have every right to make an income and our clients have every right to have GOOD advice.
Of course financial planners are pessimistic!
The FoFA reforms will reduce the value of non-aligned independent businesses, and skew the market in favour of product group advisory networks. Opportunities to be an independent Financial Planner will become increasingly limited or even unviable, and planners will increasingly be forced into alignment/employment with a product group.
Future career success will be increasingly dependent on achieving product sales targets, whilst individual planner responsibilities are increased with a new fiduciary duty. This is a disaster for individual Financial Planners and for consumers which the FPA has so far failed to address.
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