An industry veteran says the current pandemic and the resultant ‘black swan’ events have created the opportunity for Australia’s life industry to take stock of what has occurred and the lessons that can be learnt.
Barry Daniels, a former financial planner and the Founder of PFM Australia and Guardian Wealth Mortgage Managers, writes in an opinion piece that Covid-19 has been the ‘black swan’ event that has “… revealed the gaps and monumental shortcomings of the current financial service system”.
…there simply aren’t enough practitioners
“At a time when professional financial advice has never been more important or needed by so many Australian consumers in desperate need, it is unaffordable and worse, there simply aren’t enough practitioners,” says Daniels.
He says these events have provided an opportunity for regulators, industry and stakeholders “…to pause, reflect and take stock of what has occurred and the lessons contained therein”.
He continues, “I note with interest the manner in which a great portion of our politicians are acknowledging new insights on previously long held views, and even mistakes that have been made in past years in other key industries.
Daniels is calling on the Federal Government to undertake a review of financial services looking through the lens of a perfectly imperfect world.
His call is “…to back test the real impact of reform that has failed so appalling when it was needed most in the context of ensuring a strong viable financial services industry and affordable advice is available to all Australians.”
He also says steps need to be taken immediately to “… limit the risk of losing more professional planners from the ranks of an industry that needs them so desperately at this time of need and in the future”.
Barry is correct and thank you for standing up to tell it the way it is, rather than the fantasy world that has been allowed to grow into, what is now a nightmare for thousands of advice practices and millions of Australians who now cannot access advice when they need it most.
There must be changes to the LIF if the Retail advised Life Insurance Industry is to survive.
The changes are simple, will cost the Federal Government NIL and will turn a declining Life Insurance Industry around.
To date, we have had an extension to the FASEA requirements. This is not enough.
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