Australian Advisory’s latest research paper showed the results of a survey undertaken in August by 160 specialists in the financial services industry on the back of news that the total number of advisers has dropped below 19,000 to look at the major issues concerning advisers right now.
“I have never seen tougher times for advisers than right now,” Australian Advisory principal Mark Dorling said.
The results showed that compliance is the biggest concern for advisers (42 per cent), followed by the future of the industry (37 per cent) and costs (25 per cent).
The general feedback from respondents was that compliance has become too complex and that there is too much regulation and red tape.
Because of compliance, respondents also said that administration time has significantly increased and it is becoming “increasingly difficult” to keep up with the ongoing changes.
Furthermore, more than half of the respondents (52 per cent) were thinking or have thought about leaving the industry. Of that figure, 48 per cent have considered selling their business, while 4 per cent were likely to just walk away.
“From our survey and subsequent follow-up conversations with these advisers, it is obvious to see the concern our industry professionals have about the ongoing viability and future of providing financial services,” Australian Advisory said in the report.
“There is a lot of angst, anger, frustration and stress for our industry and, quite frankly, advisers have had enough.”
In a recent episode of the ifa Show, Lifespan Financial Planning CEO Eugene Ardino called on the government to “stop talking” about assisting the advice industry and to act.
Following a range of new regulations relating to subjects such as information sharing and hawking coming into effect this week, Mr Ardino said more needs to be done to help both advisers and consumers.
“Advisers and licensees, while we are in this legislation expansion phase, all we can do is put on more resources to meet those requirements and pass on those costs to consumers,” he said.
“What else are we supposed to do? It’s the government who is saying they’re serious about making advice more accessible. Well, they need to do things. They need to stop saying that and actually do serious things, drastic things to achieve that; otherwise, we just keep going down this path.”
