Regulators force advisers into retirement
The Australian financial services industry is a ‘soft target’ for regulation and the system is causing a continual drop in the number of professionals, says Million Dollar Round Table (MDRT) president Tony Gordon.
"Australia and the UK have a common structure where an overly burdensome regulation system is forced upon us, and over the last five to ten years there has been a 50 per cent fall in the number of people giving advice," Gordon says.
The UK-based president who has 32 years experience in the industry is in Australia to take part in the Association of Financial Advisers (AFA) roadshow seminars.
The MDRT is an independent international association of financial advisers and has 23,000 members in 21 countries, including 200 members in Australia. Members must be in the top six per cent of financial services earnings and remain so each year.
Gordon says regulation is driving people out of the business with the increased work and costs necessary for compliance. On top of this he says there is not enough recruitment or training in the industry to ensure growth.
"Greater regulation means greater premiums the agents have to pay and who suffers? The public," he says.
"The government needs to recognise excessive regulation and bullying can do more damage than good."
He says the number of independent groups within the industry is an issue, and what is needed is for them to work together for regulation.
"One of the reasons financial services is a soft target is there are too many vested interests, and the inability of people in the same profession to set aside immediate interests for long term benefits," Gordon says.
On the positive side, Gordon says one of the good points coming out of regulation is the tidying up of the marketplace.
"A fundamental issue in financial services is not one's degree of knowledge. It is about relationship management."
Recommended for you
The financial services technology firm has officially launched its digital advice and education solution for superannuation funds and other industry players.
The ETF provider has flagged a number of developments as it formally enters the superannuation space through a major acquisition.
While all MySuper products successfully passed the latest performance test, trustee-directed products encountered difficulties.
Iress has appointed Insignia Financial’s former general manager of master trust and insurance products as its newest CEO of superannuation, who will take over from Paul Giles.
