Advice not yet a profession
When the Association of Financial Advisers (AFA) chief Brad Fox asked Sydney Roadshow attendees to put their hands up if they thought the financial advice industry was a profession, only 5-10 per cent of people did so.
This was consistent with what the AFA had seen around the country, according to Fox, who said there were a few things the industry needed to do to improve its image in the public eye.
"In an AFL footy team there's 22 players; to win a premiereship the most defining factor is the strength of the last seven players on that list," Fox said. "In other words, how good are your worst seven?"
He said this logic could easily be translated to the financial advice and planning industry, which needs to do more to improve its "last seven".
"I'm not saying those last seven don't have a place in the team, I'm not saying they're not compliant or good — but what do they need to do to be better?
"Because it's our bottom seven that holds us back."
Fox said while education and awards programs were crucial, gaining interpersonal skills was at the core of improving the industry's image.
"Consumers expect you to have more than RG146, they expect you to have designations; but 82 per cent of clients said interpersonal skills of their adviser was the most important part of the advice they received," he said.
"Only 4 per cent said the technical strategy; so while we should have that technical aspect, it's all about emotional intelligence."
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