Early results from our first poll of 2013 tell us that advisers continue to hold concerns over the impact on their business of the Financial Services Councils’ proposed three-year responsibility period to apply to replacement life insurance policies, as well as concerns about the implementation of the Government’s opt-in policy under FoFA, from 1 July.
Asked to select the three issues that will have the biggest impact on the profitability of their business this year, 39% so far have nominated the FSC’s three-year responsibility period policy and 29% have included opt-in in their top three. Splitting these two issues is the state of the national economy, nominated by 32% of those who have voted to date.
A proportion of advisers (21%) are also indicating that a new advice business model will have an important impact on their bottom line this year. Western Australian adviser, Kenn Williams, commented on how the pace of change is impacting the advice sector:
“The rapid pace of so much change for our industry will be the biggest challenge for our business models into 2013 and beyond,” he said, adding: “The heavy and zealous hands of the regulatory and political environment, and the apparent disconnect with the practicalities of how we are to remain both profitable and client centric amidst the commercial pressures of the pointy end of the/our world are indeed the big challenges.”
Mr Williams suggested that, while advisers will continue to adapt to their changing world, there will be a number who will not make the transition this year, to what is seen to be a new advice and consumer environment, brought on by regulatory and social change.
Where is your practice positioned? Are you looking to adapt and change, or is your current business already in good shape? Tell us which are the three issues that have the greatest impact on your bottom line this year…
