The Advice community has no chance of beating the commercial/political power of the Banks and Industry funds with getting the policy structures they want. CALI [Insurers], FSC [Institutions] and ABA [Banks] have been waving the ‘political donation wand’ to ensure it happens.
Our best strategy is to cooperate with the general direction but use our ‘marginal seat’ advantage to get as many of the ‘10 COMMANDMENTS’ up as we can. The Banks and Industry funds will not stand in the way of the elimination of the costs and red tape as it will also assist them too going forward.
Both sides of politics will be keen to placate the Advice community, this outcome should therefore assist our strategy.
The recent failings of the Industry Fund risk administration and related matters suggests the Industry funds will be just like the Banks were, not very good at advice! The other advantage is the recreation of a ‘training nursery’ for new Advisers the independents can recruit from.
Consumers are more educated these days and will naturally lean towards seeking independent advice, they know if they go to the ‘FORD DEALER they will be sold a Ford’. With the market direction going towards 8 or so major Super funds competing for market share, consumers will seek advice on which is the best from an independent source.
If the Institutions are permitted to have internally trained staff to give product and related information to the average consumers, they are not clients most advisers want anyway.
The perfect ideal world of independent advisers working on a fee for service basis with clients to select the best product/service outcomes from manufacturers who do not have internal conflicted Advisers will never now happen.
With only 11,500 practicing Advisers left and 5 million baby boomers retiring over the next 5 – 10 years, that’s theoretically 434 new clients each on top of the existing client base…..happy days!
Regards.
Peter Johnston | Executive Director
Association of Independently Owned Financial Professionals
Suite 1211, 1 Queens Road, Melbourne VIC 3004
P 1800 111 203, d 03 9863 7574, m 0418 857 621
www.aiofp.net.au | Download my business card
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