Younger advisers capable of revitalising industry

Although most advisers are working to improve the public image of the advice industry, the next generation is in a better position to do so.

That is the assertion made by the Association of Financial Advisers (AFA) chief Richard Klipin (pictured), who spoke about 23 to 38-year-old advisers coming into the industry with a different attitude.

Klipin said the younger generation of advisers were starting out their careers in an already highly regulated industry, with the Future of Financial Advice (FOFA) talks well under way.

“If you’re a young adviser of 25 you’ve got a career of 30-40 years of financial advice in front of you, but if you’re 55 or 60 you’re thinking about your legacy, selling your practice and making sure that your clients get appropriately looked after,” Klipin said.

“The incoming generation, in the face of FOFA reforms, needs to position what they do in the public domain as a really critical service,” he added.

Klipin also noted that younger advisers attending the AFA National Roadshow had shown significant support for higher education standards, with most of them coming out with industry-related tertiary qualifications.

“I think the revolution is actually an evolution, and it’s already happening. It’s been happening now for probably the last decade, as the profession has attracted younger, smarter, engaged advisers that are coming out of universities with qualifications,” Klipin said.

Advisers belonging to generations X and Y were also more likely to engage in social media from a practice point of view, with most of them using websites such as Twitter, Facebook and LinkedIn to attract clients, according to Klipin.