What's my scene?
By
Kate Kachor
Fri 28 Nov 2008
Last month's FPA National Conference offered Australia's financial planning community a chance to hear about past and future changes to the industry.
FPA chief Jo-Anne Bloch used her opening address to offer her vision for the future of the industry, a vision that served to create much debate among delegates.
The centrepiece of Bloch's address focused on research the association had commissioned from CoreData about the changing scene of advisers.
A key finding of the research found only 10 per cent of FPA members planned to exit their profession in the next five years.
It was suggested that as a result of such a small number of planners looking to action their succession plan, the industry would be forced to adopt the dominant business model of a sole practitioner or two to three staff members.
Interestingly the research estimates the financial planning industry will need about 500 financial planners a year to meet the demand for advice based on current trends.
Surely this business model would lose favour among clients, particularly in the markets advisers are currently operating in. How will a one-man shop cater to the needs of hundreds of clients when financial disaster strikes?
Many within the industry have suggested there needs to be a focus on not only pre-retirement for clients, but pre-retirement for an adviser's businesses.
In regards to possible changes to the industry, the conference afforded other industry big hitters the opportunity to speak directly to advisers.
Superannuation and Corporate Law Minister Nick Sherry used his address to reaffirm the strength of Australia's superannuation system. ASIC moved to assure financial planners it is taking notice of how the financial crisis is affecting the advice industry. Early last month, ASIC contacted a number of the licensees directly to discuss how the crisis was affecting them.
In this week's IFA cover story, IFA journalists offer a wrap up of this year's conference.
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