Financial Adviser Numbers down by over 15% in 2019!

Access to quality financial planning advice is forecast to become more difficult to obtain the in the coming years. According to an article from Adviser Ratings on 5^th February 2020 financial adviser numbers decreased by 15.6% in the 2019 calendar year!

The exodus of advisers can be linked to a rise in compliance and regulatory requirements over the past year which has put a lot of pressure on financial adviser businesses.

This includes the introduction of new education standards for the industry. All financial advisers will need to meet the new minimum education standards prior to 1 January 2024. This will impact the ability of some advisers to continue to provide financial advice.

Although 2024 is still a long way away, the effects are already being felt. 4,378 advisers left the industry last year! This is an unprecedented decrease in licensed financial advisers. And it is forecast that the number of people leaving the industry will only increase as the 2024 deadline looms.

While a minimum education standard is a good thing, it also has some downsides. It will lift the quality of advice that investors receive. But it will also result in the loss of decades of experience, with some advisers choosing to retire instead of qualifying.

The loss of experienced advisers will impact many investors. In fact it is predicted there will be a significant shortage of qualified and experienced advisers across Australia. It will take time for the next generation of financial advisers to be ready.

Realistically, in order to continue servicing their existing clients, many financial advisers will cease taking on new clients. This will lead to many people simply being unable to obtain quality and timely advice.

Our two directors, Paul and Malcolm, are both fully qualified accountants and financial advisers.

They both already have qualifications exceeding the new minimum standards. And they have the knowledge and experience that is needed to help investors achieve their financial goals.

Our team will continue to look after the financial needs of our clients well beyond 2024. But like many qualified and experienced advisers we will not be able to take on more clients than we can service.

If you or your family and friends are thinking about getting some financial planning advice please make a time to talk to us. Don’t wait until the rush!