Three things advisers need to decide post Royal Commission

Reading the research report released last week from Adviser Ratings, it appears up to 14,000 advisers may leave the industry in the next five years - post findings from the Royal Commission and upgraded education standards from FASEA. 

It also means $900billion of net client assets will be in transition, according to their research.

To me, this seems like an opportunity for advisers who are in it for the long term. Whilst it will be tough for those who decide it’s not for them anymore, the resulting process will open a massive window for remaining advisers to attract new clients.

This opportunity however, will only be realized by those advisers who know exactly what type of adviser they are, and what kind of clients they want to service.

The report makes a good point - that advisers servicing an ageing population have very different needs, procedures and skillset than those advising millennials and a new generation of Australians looking for advice. I imagine both types of clients will be in transition.

So if you are in your business for the long term, and want to get ahead of the game to capture growth and help more Australians get quality financial advice, here are three things to consider in order to position yourself for growth.

 

1.  What business are you running right now? Is this the business you want?

Sometimes the only way to change is by creating a strategy for the future and pointing the ship in that direction. No change in any business happens overnight, and the reality is that over the next five years there is going to be plenty to keep advisers busy - even just with compliance and business as usual. But if you know you want to service a younger client than you currently do, start thinking about what tools you need and how you could communicate to a different client set. Then you can collect the tools and data you need over the coming years, rather than scrambling over months.

 

2. Can you collaborate with outgoing advisers now?

We all know there will be a massive drain of knowledge and talent if 14,000 advisers leave our industry. If you know anyone that is thinking of leaving over the next five years, how you can capture their knowledge and provide them a legacy to leave with? Most people want to know they have made a difference and this could be part of it.

 

3. Can you plan ahead for resources?

Finding talent is hard to do, and if you are planning on growing your client base you need to find the right people to help. Doing so over years - not months - is the right way to go about it, and allows for a realistic timeline to train people and figure out which ones work and which don’t. Not all will, that’s the law of people.

 

Of course there are a dozens of other things to consider for advisers looking to stay and grow in the business long term. No More Practice Education is committed to bringing you experts, learning and tools to help you do so.

As always, thanks for your support. We believe in what you do wholeheartedly.

Until next time,

 

 

The opinions expressed in this content are those of the author shown, and do not necessarily represent those of No More Practice Education Pty Ltd or its related entities. All content is intended for a professional financial adviser audience only and does not constitute financial advice. To view our full terms and conditions, click here.

Graeme Glossop

05/06/18

The two issues that are front and centre is education and the business model. Financial Adviser that continue to sub contract all of the services they offer are doom to failure. They have no control over the client nor their cash flow. Clients are starting to wake up to the idea that Financial Adviser are just taking money without providing a proper service and this partly due to the business model of having no underlying cash flow. The business model needs to change where the business is creating a cash flow each year by providing a professional service rather than relying on clients commissions to keep them afloat. The financial service business must have other services such as accounting, finance brokering, business consulting to succeed.

Ian Hamilton Hamilton

05/06/18

Vanessa, whilst i read some of your articles, it is not all of them. I would receive about 30 emails a day, from various houses that want to spread there opinions on there funds, products, services and many other issues. I have just read yours today and yes after 27 yrs, I am hoping to exit rather soon. It is a terrible inconsistent environment we have to work in, for every great piece of advice out there on a daily basis unfortunately there are many more not warranted as even sufficient. The clients will just stay with the industry funds they know and to hell with the large institutions, they are not trustworthy at all. The difference in compliance , standards and actual benefit to a retail client.... from one practice to another to an "In house Licensee "makes hockey look like polo cross. it is not where i want be anymore, I have pride in my 27 yrs of constant change and more survival. i am not in a position to retire but will hopefully find a nice little opportunity in something else. PS I also bought the Breakfast Club for 40 somethings.

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