The most likely short to medium-term future for my risk advice practice lies in:
- Retaining my current personal advice proposition (40%)
- Selling my book of business (28%)
- Not sure (16%)
- Remaining a consultant to my clients while 'outsourcing' the personal advice (7%)
- Moving to a general advice-only model (6%)
- Another scenario (3%)
Our latest poll asks about the vision you have for the future of your risk advice practice.
We’re asking this question based on our reporting this week of more activity in the advice sector which is seeking to offer alternative futures for some advice businesses (see: Life Plan Expands Offer…).
Many advisers/owners of risk specialist advice businesses are considering exiting the sector in the short-to-medium term due to one or more factors which include:
- Capped remuneration restrictions via the Life Insurance Framework reforms
- Requirement to pass the FASEA Adviser Exam by 1 January 2022
- Minimum education requirements required by 1 January 2026
Quite apart from the impact these critical regulatory reforms appear to be having on adviser numbers, the advice sector is also in the process of witnessing the natural attrition of the Baby Boomer generation of advisers and advice business owners who are – in any case – moving to the next stage of their career and their lives.
Within this current environment then, in which the combination of regulatory reforms and Baby Boomer retirements is having such an impact on adviser numbers, the market seems to be working hard to try to establish new or more creative alternatives for advisers and advice businesses who prefer to continue their business offer – either with the same or a potentially alternative advice proposition.
We’re not advocating the new alternatives that firms such as Life Plan or Australian Financial Advisory Network are proposing – and these alternative offers may not necessarily be a good fit for you and your business. But the ‘general advice’ or ‘consultant’ models may well represent a possible good fit for some.
Cast your vote and we’ll continue the conversation next week…