White paper warns of post-LIF exodus

ClearView released a white paper, ‘What’s old is new again’, that noted mature advisers in their 50s and early 60s could retire prematurely from the financial services industry due to broad structural and regulatory changes, despite their desire, ability and capacity to continue providing advice.

ClearView general manager of distribution Christopher Blaxland-Walker said the convergence of four major factors: demographic changes, digital disruption, remuneration reform under LIF and stricter education and training requirements, threatened to extinguish an entire generation of invaluable knowledge and experience.

“Moving into 2017 and beyond, it’s important that there isn’t a repeat of 2004 when the introduction of the Financial Services Reform Act (FSRA) drove out many advisers, both good and bad,” he said.

“FSRA got rid of many unqualified and poorly qualified agents, and rightly so, but in the confusion many competent mature advisers exited too.

“They weren’t adequately supported to gain the necessary qualifications, adjust their business models and manage the transition.”

The white paper proposed possible solutions including formal and informal mentoring programs that marry experienced advisers and newcomers, and the creation of flexible ‘relationship manager’ roles within manufacturers, licensees and practices, designed specifically for senior advisers and former advisers.

Further, it said that these full-time, part-time and casual roles would likely include client-facing responsibilities such as welcoming new and prospective clients, connecting them to an advice, articulating the value of advice and handling claims.

“The current generation of advisers are more educated and technically proficient than any other but they can still learn skills and qualities like empathy and resilience from mature advisers,” Mr Blaxland-Walker said.

“If the industry can successfully close the generation knowledge gap, the result will be a profession that’s mastered the art of winning new clients and building personal relationships not only business relationships.”

Adrian Flores

Adrian Flores is a deputy editor at Momentum Media, focusing mainly on banking, wealth management and financial services. He has also written for Public Accountant, Accountants Daily and The CEO Magazine.

You can contact him on [email protected].