Why 2022 will be ‘the year of consolidation’ for advice after overregulation

In a new opinion piece published on ifa, Lifespan Financial Planning’s chief executive Eugene Ardino said this year will be “the year of consolidation” and “relative stability” for the sector, though there are some factors that could disrupt it.

“The rapidly approaching federal election has the potential to either help or hinder our industry from reaching some agreed status quo when it comes to regulation,” Mr Ardino wrote.

“This election could prove to be a positive, as there will be policies discussed and an election platform focused on advice, and more specifically, advice inefficiency and affordability.

“With this focus, both parties will articulate their positions, and potentially force the spotlight onto the obvious over-regulation of financial advice.”

Mr Ardino’s comments come after a new survey of more than 3,000 businesses across several key sectors, including financial advice and wealth management, has revealed overwhelming support for a Coalition government, with over half of the survey respondents confident that Scott Morrison will remain Prime Minister.

The current PM was preferred by a majority of respondents over Opposition Leader Anthony Albanese, with the greatest margin seen in mortgage lending, closely followed by the financial advice and wealth management sector.

Mr Ardino added: “It is always difficult to anticipate what is ahead of us in the next 12 months.

“However, with the acknowledgment among all parties that the pendulum needs to swing back towards a more considered and transparent approach to compliance and the advice process, I strongly believe that we can come out the other end in much better shape.”

Read the full opinion 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.