As the last round of FASEA exams for the year come to an end this month, many Advisers are anxiously waiting to see where their future lies. If these Advisers do not pass the FASEA exam, they will cease to be considered a relevant provider by FASEA and will be de-registered.
With 39% of Advisers who sat for the September FASEA exam failing, it has been speculated that the number of Financial Advisers nationally is likely to fall below 17,000 by the end of the year * and ** more than 30% of the current workforce is at least a moderate flight risk of leaving the industry within the next two years .
According to the Musical Chairs 2021 Q3 Report (powered by Adviser Ratings), almost a third of Advisers (31.6%) are showing signs of potential departure. The report notes that while they don’t expect flight risk to translate into departure in all cases, these early indications should raise the alarm.
The sad reality is a number of Advisers will soon be no longer considered as a relevant provider. Many think they are only left with the option of having to walk away from the industry and their business (clients and staff). They feel as though they have been forced into an early retirement − even though, according to many industry colleagues, these same Advisers are considered to be very good Financial Advisers who have been practicing for 30+ years. Many have several staff and families relying on them to pass the FASEA for everyone to maintain a job in the industry.
This personal commitment and responsibility by Advisers to their team and family, along with the anxiety of sitting for an exam in a formal setting, something not done in decades, has added significant additional pressures, increased stress levels and perhaps been the very reason why Advisers have struggled to pass these exams.
SO WHAT ARE YOUR OPTIONS GOING TO BE AS AN ADVISER IN 2022?
If you’ve been following Australian Advisory over the last few months, you would probably be aware they are encouraging conversations with Advisers about their OPTIONS to stay in the industry, post the FASEA deadline.
Our biggest message to those who:
• have left
• are considering leaving, or are
• thinking about leaving or selling
is…
YOU DON’T HAVE TO SELL OR LOSE YOUR BUSINESS.
PLESE TALK TO US FIRST.
ARE YOU A RISK ONLY ADVISER?
If you are an Adviser who has mainly been providing RISK only services and/or limited investment and superannuation advice, then you understand that unless you have passed the FASEA exam, and do a wholistic approach that also includes superannuation and investment, you will no longer be able to operate under a Personal Advice model to all your risk clients next year.
You will need to either resit the exam if you have failed twice OR you will need to consider transferring to a General Advice (GA) model. If you are uncertain about how a General Advice model can work, then you need to speak to Australian Advisory.
Not all Dealer Groups offer, understand, or even support a GA model.
From Australian Advisory’s list of OPTIONS for Advisers, it is our GA model that is becoming an increasingly attractive choice for those risk writers who:
• still have many good working years left,
• still enjoy working with their clients,
• are looking to reduce the administrative workload and spend more quality time with clients,
• want limited compliance, reduced overheads and costs, AND
• who want a supportive ‘home’ for their business and clients where they can continue to supply quality risk products.
Even if you have already left, about to leave, or your licensee is going to terminate you on the 31 December 2021:
• you DO have options AND
• you DO have some TIME left.
Let’s catch up this month in person or over a ZOOM call to discuss your options of staying in the industry with:
1. less costs
2. more time
3. better support from management, compliance and training
4. And MOST IMPORTANTLY more options
You can join our next online conversation by registering here, where we discuss all of our available options to Advisers moving forward into the new year.
WOULD YOU LIKE TO HAVE A ONE ON ONE DISCUSSION ABOUT THE OPTIONS AVAILABLE?
If you would like to speak to us about your options, email or phone Nathan Kassouah on 1300 PLANNING (1300 752 664) or info@australianadvisory.com.au to schedule a time to have a confidential conversation with one of our management team.
You have spent years in this industry, please don’t throw it away…
We look forward to seeing you or hearing from you soon.
Your Australian Advisory Team
Supporting Advisers to
STAY, PARTNER OR TRANSITION
PS: Click through to our article on how to transition from Personal Advice to General Advice
Source: * and ** 1 : https://www.smh.com.au/money/planning-and-budgeting/rapid-decline-in-financial-adviser-numbers-sees-fees-rise-20210714-p589ng.html * and ** 2 : https://riskinfo.com.au/news/files/2021/11/211028-Musical_Chairs_2021_Q3.pdf