'A really important challenge': The 'critical' issue impacting the future of advice

On a recent episode of the ifa Show podcast, FINSIA CEO and managing director Yasser El-Ansary, shared his concerns about a specific area in the advice industry that must be looked at in the upcoming Quality of Advice Review (QAR).

Mr El-Ansary said "far too much complexity" within the sector is affecting adviser numbers and could harm future advisers entering the industry.

"I know this is not an easy one. It's certainly not a simple challenge. Otherwise, many of us would've already done something about it, to be frank," Mr El-Ansary said.

"But how do we create an environment that supports a growing pipeline of talented professionals coming into financial advice for the future? I think that's actually a really important challenge."

The head of the professional membership body for financial services said that the QAR must take the declining numbers and older demographic of the space into account.

"We have an aging demographic in this space. We have to take very measured, well-calibrated steps in order to grow the pipeline of professionals coming into financial services over the coming years," he said.

"We know that that's critical."

However, Mr El-Ansary is optimistic about the QAR, saying that he believes the industry is in a "uniquely different position" compared to when to financial services reforms were being worked through a decade ago.

He also claims a "stronger alignment" within financial advice stakeholders in Australia will only be a boost for the sector in years to come.

"I think it will bode well for the work that [QAR reviewer Michelle Levy] and the team at Treasury are doing now and should create the right environment around which to create an air of support, an air of collaboration and unity in the approach that we all think needs to be taken by the government in order to solve some of these big challenges," Mr El-Ansary said.

"And I think that's really one of the biggest opportunities we have in front of us."

On the same episode, Mr El-Ansary backed Ms Levy to provide recommendations to Treasury that will help increase access to financial advice in Australia.

"[Ms Levy] will already have a very good idea of where the pain points are, where the challenges are and where the opportunities are for our future," Mr El-Ansary said.

Listen to the full podcast with Mr El-Ansary 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.