‘Reform has been a failure’: Why advice industry is at a ‘crisis point’

In a new opinion piece published on ifa, Connect Financial Service Brokers head Paul Tynan wrote that the sector has “reached the precipice” and must tackle reform in a different way to ensure its future.

Mr Tynan suggested two key factors to improve the accessibility and affordability of advice in scale and financial literacy that he said need “immediate attention”.

“The range and complexity of financial products consumers have to choose from are literally mind-blowing, and decisions relating to the purchase or investment in these have far-reaching consequences and implications if the wrong choice is made,” Mr Tynan wrote.

“At present, schools are providing courses in financial literacy on an ad hoc basis – and this is unacceptable.

“Financial literacy courses should be compulsory in all schools for students in years 10 to 12.”

Mr Tynan believes that the history of reform in financial services has failed to effectively respond to technological and social changes, nor has it driven productivity or promoted a positive image publicly.

“While there have been commendable advances, by and large reform has been a failure,” he wrote.

“So not surprisingly, the situation we see today, is of an industry that has reached a crisis point and in an environment in which consumers have lost faith in the sector’s ability to deliver affordable and accessible advice and reliable/relevant products and services.

"The solution is simple… the sooner politicians adopt a bipartisan approach and vocal lobby groups put self-interest aside, the sooner all stakeholders will find the courage and wisdom to restructure financial services with purpose, for growth and success.”

Read the full piece here.

Neil Griffiths

Neil is the Deputy Editor of the wealth titles, including ifa and InvestorDaily.

Neil is also the host of the ifa show podcast.