Industry organisations are disagreeing over\u00a0how many jobs may be lost as a result of the implementation of the proposed Future of Financial Advice (FoFA) reforms.<\/p>\n
The Association of Financial Advisers (AFA) and financial services giant AMP have estimated job losses in the tens of thousands.\u00a0 In contrast, Rice Warner, on behalf of the Industry Super Network (ISN), has released new research which estimates the number of advisers will reduce by a few thousand, significantly less than the AFA and AMP estimates.<\/p>\n
Commenting at the AFA’s 2012 GenXt National Roadshow series, AFA CEO, Richard Klipin<\/strong>, said that if the reforms went ahead without amendment, 35,000 people across the financial advice profession would lose their jobs.<\/p>\n “If we accept the evidence, supplied by the Government in the Explanatory Memorandum attached to Tranche 1, then 6,800 adviser roles will be wiped out,” Mr Klipin said. “Extrapolate that number out to include the five or six ancillary staff each small business adviser currently employs and you’re looking at about 35,000 jobs.”<\/p>\n Late last month, AMP voiced similar concerns about potential job losses across the industry. \u00a0Speaking in front of the Parliamentary Joint Committee on Corporations and Financial Services (PJC), AMP’s Managing Director, Craig Meller<\/strong>, said the group believed the FoFA Bills, in their current form, would lead to job losses in the industry of up to 25,000.\u00a0 “Our view is that, holistically, there is a real shortage of capacity to deliver quality advice in Australia today and that any reduction in the number of financial planners will reduce that capacity to provide financial advice,” Mr Meller said.<\/p>\n Also present at January’s PJC hearings was the Industry Superannuation\u00a0Network, represented by its CEO\u00a0David Whitely.<\/strong>\u00a0 Mr Whitely countered the\u00a0AFA and AMP submissions, stating: \u00a0“There are a number of factors that would indicate a growth in employment to the financial services industry and particularly financial planning.”\u00a0 Mr Whitely said that the figures being used to estimate job losses were no longer up to date, and that Rice Warner had reviewed its original research (used by the Government to introduce the reforms to Parliament).<\/p>\n In the new report, Rice Warner estimates that the number of ‘full advice’ advisers will decrease from 17,400 in 2012 to 14,260 in 2026. \u00a0However, advisers employed to deliver ‘scaled advice’ are expected to grow, with the report predicting there will be an additional 2,100 employees in this category by 2026 (up from 300 today).<\/p>\n In a letter introducing the new research to the PJC, Mr Whitely said the report highlighted very positive impacts from the reforms, including a near doubling of the amount of advice provided by 2026.<\/p>\n “After taking into account the policy changes and the increases in scaled advice employment since publication of the first report in 2010, the latest report finds total employment in the sector will be broadly stable, with the most profound change being the type of advice advisers provide, in response to consumer demand.\u00a0 There will be increased use of IT and the internet to provide cost effective advice to Australians,” Mr Whitely said.<\/p>\n “The updated report also notes that total employment may increase depending on the success of commercial strategies developed in response to the reforms. \u00a0For example the new cohort of Australians accessing scaled advice may be more receptive to upgrading to more costly full advice by being familiar with the benefits of advice,” he added.<\/p>\n","protected":false},"excerpt":{"rendered":" Industry organisations are disagreeing over\u00a0how many jobs may be lost as a result of the implementation of the proposed Future of Financial Advice (FoFA) reforms.<\/p>\n","protected":false},"author":7,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[282,8,270],"tags":[],"class_list":{"0":"post-14074","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-associations","7":"category-compliance-regulation","8":"category-remuneration"},"_links":{"self":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/14074","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/users\/7"}],"replies":[{"embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/comments?post=14074"}],"version-history":[{"count":0,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/14074\/revisions"}],"wp:attachment":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/media?parent=14074"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/categories?post=14074"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/tags?post=14074"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}