As industry associations “circle the drain”^[1] and the banks and insurers scramble for the exit, the financial planner ‘casualties of inaction’ are starting to pile up. Research by MLC^[2] shows that two in three risk advisers are going backwards, and the Association of Financial Advisers estimates the revenue loss to be 57%^[3]. Over 40% of life advisers have still not adapted their business model to account for the changes.

There is more to come this year when the current opt-in laws will be thrown out and advisers will need to warn clients if they aren’t independent. Legislation has been drafted and is to be effective July 1.

“This is a time for advisers to flourish, not wither,” says Daniel Brammall, President of the Profession of Independent Financial Advisers. “Yes, the opportunities that these reforms bring do require change, but for those advisers who recognise this and take action, I believe 2020 can be the best year ever,” he says.

“This is the reason the Profession created the ‘Pathway to Professionalism’ program and a new ‘Associate’ category of membership – to support advisers through the regulatory minefield so they can face 2020 with confidence and optimism, and these threats simply become noise.”

To see more about how to charge for life insurance advice, as well as adapt to the new opt-in and independence laws, go to https://members.pifa.org.au/

^[1] “The pointy end of professionalism”, Simon Hoyle, Professional Planner 21/11/19

^[2] “Life insurance advisers see profits plummet”, AFR 13/12/19

^[3] “Financial advisers see red as deadline looms”, AFR 28/11/19