FOFA forcing early adviser retirement

Having surveyed 200 advisers last week, M&A consultant and Radar Results principal John Birt said the Senate’s decision to throw out the government’s amendments to FOFA has caused many to change their long-term career and retirement plans.

In addition to the quarter of respondents that indicated an early exit from the industry, 15 per cent expressed their intention to sell their business, or that they were unsure about the future.

However, despite those looking for an exit strategy, 10 per cent of respondents indicated they intend to grow the business in order to meet the requirements.

The survey also found that advisers still maintain strong opposition to a number of aspects of the FOFA legislation, including 92 per cent who do “not agree” with the opt-in requirement and 74 per cent voicing displeasure with the need to provide fee disclosure statements.

Seventy-eight per cent said costs will now increase, with 86 per cent likely to spend more time on paperwork and 69 per cent intending to raise client fees to meet the additional costs.

Mr Birt said that financial advice should be made tax-deductible in order to assist clients now facing additional fees, “just like accounting and tax fees charged by accountants”.