We’ve seen all the trade press citing 60% of advisers not having the educational minimums under the proposed federal government framework. I agree many will embrace change. Some begrudgingly.
What will be the response from Authorised Representatives (ARs) who don’t satisfy any new minimum requirements?
The answer is simple.
Authorised Representatives should ask themselves the following questions:
- Do I have a continued passion for a career in financial planning and therefore prepared to complete formalised study beyond current requirements to hold AR status by 2019 (or the date eventually agreed)?
- If I’m over 50 something – Do I have sufficient capital to either retire or pursue other business interests?
- If a business owner – Can I (and do I have the desire to) continue as an owner, manager and leader of a business without being an Authorised Representative? If so, what are the implications for existing client relationships and can I deliver sufficient value and opportunity to employees?
Whether clarity on the decision is still distant or not, the legislation has bipartisan support and the industry is yearning to improve its image and perceived value. Many AR’s will need to make a decision sooner than later.
Couple this with the proposed new entrants pathway, and there may be a gap in the supply of quality, productive advisers for a period of time.
And with disruption comes two choices:
- The sky is falling
- What opportunities arise as a result of change?
We see opportunity
What’s certain is if you begrudgingly pursue study and perceive you don’t have an option, the emotional toll on you, your relationships and your client interaction with be significant.
Education alone does not make a successful financial planner nor profession
But a new framework will come………at some stage, in some form.