Our final poll for the year references the top story published by Riskinfo in 2024, namely our recent report that the new class of adviser will become a reality in 2025 (see: New Class of Adviser Confirmed).
But, what to call this new class of adviser?
As part of its initial response to Michelle Levy’s Quality of Advice Review recommendations, the Government came up with the term ‘Qualified Adviser’ to describe what the industry is now generically referring to as the new class of adviser.
There is almost literally no-one in the entire sector who thinks the term ‘Qualified Adviser’ is a good descriptor for the new class of adviser, but we’ve included it in your list of options for this poll as it has effectively been the temporary incumbent across 2024 and may have come to be accepted by some (but probably not!).
[the debate]…has focussed as much on what language the term should not contain, as it has on what it should
Whatever term is eventually ascribed to the new class of adviser, it will follow an industry debate which has focussed as much on what language the term should not contain, as it has on what it should.
For example, there have been calls to ensure the words ‘adviser’ and ‘financial’ should not be included in the name, as this may create ambiguity or a mis-leading impression in the mind of the consumer.
Elsewhere, others have pointed to the UK, where there is a category called ‘Restricted Adviser’, which can only recommend related party products. And because it appears the new class of adviser may only be able to recommend related party products, then ‘Product Agent’ has also been put forward by some.
Others have suggested there exists merit in utilising terms such as ‘Associate’ or ‘Consultant’.
Submissions as to the appropriate descriptor for the new class of adviser have already been put to the Treasury, as the industry awaits the Government’s decision. In the meantime, however, perhaps you might be able to influence the outcome.
Giving this debate some perspective, one stakeholder has offered this observation, namely that while the industry has been debating this name for 12 months, there are other questions that are more important, such as what the new class of adviser will actually be allowed to do, once the legislative green light has been confirmed.
We’ll report back to you in the New Year, but in the meantime, have your say. And please leave your own thoughts on the best name for the new class of adviser if it doesn’t appear in the list above…
Sometimes, the obvious is overlooked.
One of the oldest types of Adviser, namely the Life Insurance Adviser, amazingly and concisely, meant people knew that the Adviser provided, "Life Insurance Advice."
Having designated Life Insurance Advisers, who only provide Life Insurance advice, with it clearly and concisely stating the limits of the advice being provided, seems a good step in the right direction.
Then, we could go one step further and have Life Insurance designated upfront and ongoing education requirements, so potential new entrants can see a clear pathway that is not the current maze and roadblocks that drives people away.
Most things in life are simple, UNTIL the Government and "Expert lobbyists" get involved, then it becomes another red tape monster.
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