The financial planning sector must get ahead of the curve and act with a collective voice when consulting with government on potential reforms impacting the industry, delegates were told during a panel session at the Association of Financial Advisers (AFA) national conference.
MLC group executive Steve Tucker said the advice industry must take a more forward thinking attitude to address structural elements around volume incentives, intra-fund advice reform and commission structures within insurance.
“We have to show the government and the regulators that it’s just not about consumers, but that we are prepared to in our own way get on the front foot. For example, what sort of issues are there in the insurance industry that do create perceptions of conflicts of interest even if they’re not there?” he said.
“We’ve got to start unpicking these arguments and get ahead of the curve and think about what is going to be the next hurdle to see how can we put forward a strong position, so that when we’re in the conversation we’re not seen as completely self interested and reactionary.”
AFA chief executive Richard Klipin said the industry has lost itself in the technicalities of advice and must reframe the conversation to the value that advisers can deliver.
“Until we get united as an advice profession … and take that message to Treasury and the politicians, they’ll see there is strength in the voice and perhaps we can start to challenge what is conventional thinking,” he said.
“Ultimately, we’ve got to simplify it and get focused on where we’re heading because it’s the world of a consumer.”
Former leader of the NSW Liberal Party, Kerry Chikarovski, urged advisers to take the time to talk to their local members of parliament (MPs).
“The senate represents the whole of the state, so make time to go and see your local member or send them a letter. Tell them how you run your business. The anecdotal stories are the sorts of things that will really resonate with MPs,” she said.
“What the government has to make sure of during this whole political and legislative process is that they don’t make it so difficult for advice businesses and for their clients to get advice that they decide to opt out.
“So the message we’re trying to get through in a political sense is that you can’t make this either so complicated or so expensive that people choose not to go get advice.”
