Dealer groups that can effectively guide advisers through the Future of Financial Advice (FOFA) reforms and offer more networking opportunities will be better placed to attract and retain advisers in the future, industry heads have said.
Financial Services Council chief executive John Brogden said the financial advice arena had been moving rapidly from product sales to professional advice and dealer groups that could effectively support advisers in the transition would be better placed in the years ahead.
“The point of difference for dealer groups will be which ones can most effectively adapt to changing circumstances and navigate their advisers through reforms while ensuring things like business development, compliance and growth are not compromised,” Brogden said.
Association of Financial Advisers (AFA) chief executive Richard Klipin said advisers were crying out for strong leadership, clarity and direction amid the reforms, which was one of the reasons why the AFA was doing more work with licensees to ensure that happened.
“Dealer groups need to work on their value proposition and ensure they’re doing everything they can to get their adviser networks FOFA ready because licensees that can articulate the pathway to the future will be the ones to grow their networks and retain advisers,” Klipin said.
Asteron executive general manager Jordan Hawke, who oversees Guardian Financial Planning, said the licensees that would stand out were the ones that could effectively steer advisers through the changes.
“The dealer groups that help their advisers to prepare and make the necessary changes and which at the same time can drive efficiencies will be the ones that come out on top,” Hawke said.
Klipin added that further opportunities for advisers to network and discuss how they were adapting their businesses were also important as many felt they led a sole existence.
“A lot of advisers are out there operating in suburban practices and feel out of the loop with a lot of the big picture issues, which is why it’s important that they have avenues to come together and learn from each other’s experiences,” Klipin said.
“Licensees in Australia do a great job in terms of professional development days and networking events, but I think there needs to be even more opportunities for advisers to share stories and learn from one another.”
Business Health partner Terry Bell said many advisers worked alone and in isolation, which was why dealer groups that provided forums where they could speak with their peers were more attractive, particularly in light of FOFA and pending legislative changes.
“Dealer groups need to host more discussion groups, more workshops and more forums to enable advisers to come together and talk through the issues,” Bell said.
“This year more than any other advisers are feeling emotionally drained and challenged and I think those that can facilitate more discussion groups will be providing an invaluable service.”
