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2016 - The Year Ahead

Editorial Economic update, General 11 Jan 2016

Is your circuitry slowly becoming disconnected? In 2016, it’s time to reconnect with this space oddity that is financial planning….As we mourn the passing of David Bowie, his life is a reminder of the need to evolve to maintain relevance - a man that kept up with his fans and kept bringing in new fans decade after decade. A true innovator.

Have we kept our New Year's resolutions so far and how do these resolutions relate to maintaining relevancy or have some of them been busted already?  With the sun out and some recent memories of relaxation in the mind bank, some of us might find it a bit hard to click back into gear for the working year. As they say the early bird catches the worm, so we’d like to give you a little reminder of some of the key things that will be happening in our industry space this year to help ease your thoughts back to the business of financial advice and ensure you remain relevant and connected in this changing landscape.

Year Ahead

After the announcement of higher education standards in 2015, the government is proposing all advisers must meet a minimum ‘relevant tertiary degree’ by 2019, which is Level 7 qualifications on the Australian Qualification Framework. With 75% of advisers currently not “appropriately” qualified, education institutions will be offering an array of options to help with this transition.

The government has also proposed that advisers:

  1. pass an exam
  2. undertake continuing professional development

  3. undertake a professional year

  4. subscribe to a code of ethics

All of these things are aimed at improving competency levels throughout the industry.

Many within the industry feel this could be overkill and in fact force many good and competent planners out of the industry, resulting in a far greater detriment to consumers. Brad Fox, CEO of the AFA, in comments made to Money Management, suggests the new proposals will be an unnecessary impost on many of the more experienced advisers in the profession - “Older, experienced advisers who are already recognised with a strong and untarnished track record of giving quality advice, who have abided by professional association codes, and who have shown a long-term commitment to keeping their professional development current, should not be subject to unnecessary red-tape to re-validate their competence”.

Whilst it remains to be seen whether a relevant AQF7 degree becomes legislated, there are obvious and maybe not so obvious benefits to gaining further qualification. Aside from the obvious upskilling that you get with more qualifications, there is also a supplementary benefit. Qualifications can be helpful in attracting new clients as they add value and transparency to the business. Qualifications can also help validate your business for existing clients.

At present Adviser Ratings is incorporating all the qualifications details from the ASIC registry for every single adviser in Australia. This will provide the opportunity for advisers to showcase their qualifications and for consumers to easily check these details if it is important for them.

Other than continued education, further developments regarding technology are sure to be a big feature of 2016 and is a must in your business to stay connected with your customers. For financial planners, the use of various new technology has the potential to bring about increased productivity and gains in service efficiency. Tech tools are set to help with diverse areas such as CRM, file sharing and virtual meetings. Noting this trend, Adviser Ratings will continue to improve and add to our platform. New developments which will allow for industry and consumer benchmarking comparisons and more effective client engagement tools are on the way. With more detailed information on clients and industry, better relationships can be formed and more satisfying services can be provided.  

These are just a couple of things to keep in mind as we kick start the new year and give it some revs before shifting to first gear. Financial advisers need not fear any unsettling changes in the industry. If you think this is the way things are going, it makes sense to be open and explore what new opportunities such changes may bring, so you don't become another Major Tom. We will certainly be doing all we can to make sense of, and help compliment the industry as we all move forward through 2016!

RIP David Bowie

Was this article helpful?

23 comments

"Ann, not sure what you mean about politically correct people, you can say or write what you feel and think, its just that when you do you're also inviting others to do the same, some will agree and some won't. You seem to have an issue with anyone who doesn't agree. "

Russell 15:14 on 13 Jan 16

"Politically correct people at it again, you can't say or write what you feel and think anymore!"

Ann 10:41 on 13 Jan 16

"Hey Terence,Thankfully AR realise they completely misjudged how to respect someone and there family in a time of such sadness, something that perhaps you could learn, so as to improve your people skills as they seem to be sadly lacking if you have to resort to calling people "idiots" . Maybe a goal for you would be to read Dale Carnegie's book. "

chris 10:18 on 13 Jan 16

"Thanks Mike for picking up our typo - yes, we totally agree with you 👍"

Adviser Ratings 10:14 on 13 Jan 16

"Hi Ziggy / Mumbrella - we have not edited the image nor the title of the article. We did add those words you mentioned to help clarify the connection following online feedback. The email always had this different image and title to the one in the article. The email was sent to a closed distribution list, hence the different image and title. And we do not add, edit or delete comments in our blog unless they contain profanities or are defamatory. And we certainly do apologise in this instance if you or anybody else were offended. "

Adviser Ratings 10:11 on 13 Jan 16

"there is not such word as 'relevancy'. RELEVANCE is a word. You must look in an American dictionary for 'relevancy', so it is not real "

Mike 10:08 on 13 Jan 16

"take a cold shower!"

Mike 10:04 on 13 Jan 16

"For those asking why Mumbrella is making a fuss about this seemingly innocuous piece: it's because Adviser Ratings has completely re-edited it. From Mumbrella: January 13 update: Dr Mumbo notes that the “Ground Control” headline has been removed overnight, the spaceman image has been deleted, and the article has now been re-edited to appear to be a tribute to David Bowie, with a new paragraph added at the top saying: “As we mourn the passing of David Bowie, his life is a reminder of the need to evolve to maintain relevancy – a man that kept up with his fans and kept bringing in new fans decade after decade. A true innovator.” Meanwhile, the brand has taken to Twitter with the classic non-apology apology of “If you were offended..” Own it and apologise."

Ziggy again 09:38 on 13 Jan 16

"This seems so indefensible. Lots of comments defending this, coming from Adviser Ratings I wonder?"

Ziggy 09:13 on 13 Jan 16

"I read the same article over at Mumbrella - a publication that comments on topical information to gain more readers and sell advertising space!!! Highly hypocritical and frankly, poor quality journalism - trite articles. Anyway, had to add my comment, to see what the fuss was about"

Mumbrella (HA!) 00:00 on 13 Jan 16

"This article is actually perfectly respectful IMO. Ignore the people who can't think for themselves. Too many folk in our industry don't understand innovation, of which Bowie was a master. Ironically, I read this article after seeing it reviewed on a Mumbrella web page titled 'Meet the brand that turned David Bowie’s death into a tacky marketing message'. Met a Mumbrella journo at a function a few years back, he was an utter twit."

Adam 19:37 on 12 Jan 16

"Gees, some people are sensitive. Don't apologise Adviser Ratings. A lot of advisers need to apologise for their inaction and laziness over the years. Bring on the new breed, I say."

Jess M 18:13 on 12 Jan 16

"Great article."

Tim 17:59 on 12 Jan 16

"I was not offended in any way - don't let the trolls change what you're doing. From a passionate, independent advisor."

Anonymous 13:41 on 12 Jan 16

"It seems that our intended tribute as an organisation to David Bowie and his pioneering ways was met with some unintended reactions. Please see note from our Managing Director: Firstly, we apologise for any offence taken to drawing parallels to the efforts of David Bowie in his life and how his ability to maintain relevancy is a good lesson for financial planners. I appreciate it is an emotive subject. Part of the article was amended and the image was inserted as a “tribute” to an icon. One of his outstanding qualities was his innovative nature – this can be applied or be a lesson across many aspects of life. As an example – from our point of view – the financial planning industry is constantly under threat from new challenges, we thought what better way to recognise his efforts for the music industry by having participants in the financial planning industry emulate his ability to evolve and change. David Bowie was at the forefront of innovation and is a great example for both individuals and organisations (such as ourselves). Apologies if you found the article offensive – that was certainly not our intent."

Adviser Ratings 13:32 on 12 Jan 16

"Touch and go - but I do see the connection. But I don't think it is in any way disrespectful. PS I was not a fan of David Bowie's music, but thought he had a brilliant mind"

Peter 12:33 on 12 Jan 16

"It is some of the comments here that make me recognise how backward some people in this industry are - if you read the gist of the article, it is saying how do we become more like David Bowie.......Chris - you're an idiot!"

Terence 12:29 on 12 Jan 16

"Not good taste and a very cringe worthy effort to use David"s passing for some very poor marketing. That is why he was loved and respected as a true superstar and great guy, something this site will never ever be. Dumb dumb and dumber is what you have shown yourselves to be, so disrespectful. "

chris 12:19 on 12 Jan 16

"Chill out everyone - how's this disrespectful. If anything, I find it a decent tribute and clever. I am a big fan of David Bowie and it seems these guys are as well. Chill all you fuddie duddies!"

Jenna 11:50 on 12 Jan 16

"Very Poor taste"

Brad Lawler 11:47 on 12 Jan 16

"This is in poor taste, I am not one to get online and be constantly outraged, but are you serious with this pathetic attempt for people to read your lame blog article? BTW I am not even a fan of David Bowie but have respect for him"

Pathetic marketing 11:33 on 12 Jan 16

"Cheap and inappropriate to climb on David Bowie's death and use this to market your email newsletter, very cheap. I'm discusted"

cheap marketing 11:30 on 12 Jan 16

"Thank you, thank you, thank you"

John 11:19 on 12 Jan 16

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