The government's announcement to possibly raise qualification standards of financial planners has drawn criticism, but a YBR broker says in every change there is an opportunity to be found.
The Australian Financial Review has claimed the federal government's plan to make advisers hold degree-equivalent qualifications within three years could see many advisers abandoning their businesses, MPA's sister title Australian Broker recently reported.
A submission from the Financial Planning Association of Australia claims it will be impossible for full-time advisers to complete their degree in the timeframe proposed by the government, the AFR said.
"The consequence of this measure will be a dramatic reduction in financial planner numbers, which will impact tens of thousands of clients being left without their financial planner to service them, hundreds of small businesses closing their doors, resulting in large numbers of support staff/employees out of work,"
the submission said.
Although qualification standards to enter the industry may tighten, one broker says experience is just as important, if not more and plays a large role in hiring new staff.
Principal and Wealth Manager of YBR Randwick, David Chia is a qualified mortgage broker and financial planner but told MPA experience is equally important in providing the best outcome for the client. "The optimum solution is a mix of both – education plus experience."
Although he recognises the government's proposed measure will help filter qualified people into the industry with high technical knowledge, he says it doesn't guarantee they will be a better financial planner.
“In an industry where information in the profession changes all the time, you’ve just got to keep up with those things," Chia syas. "In understanding the different client scenario situations, I think the experience is more important.
“If I had to choose between the two, the experience I would find a bit more important than the actual qualification.”
If the government's proposition comes into effect, Chia says some may leave the industry but those that choose to stay and adapt to the change will make the industry stronger.
“Whenever there are changes, I always see opportunity there. We just try hard to adapt to it and try to adapt to it as early as possible.
“The guys that are keen and passionate about the industry will just keep going – they will adapt to it and find the best solution for the client."
A submission from the Financial Planning Association of Australia claims it will be impossible for full-time advisers to complete their degree in the timeframe proposed by the government, the AFR said.
"The consequence of this measure will be a dramatic reduction in financial planner numbers, which will impact tens of thousands of clients being left without their financial planner to service them, hundreds of small businesses closing their doors, resulting in large numbers of support staff/employees out of work,"
the submission said.
Although qualification standards to enter the industry may tighten, one broker says experience is just as important, if not more and plays a large role in hiring new staff.
Principal and Wealth Manager of YBR Randwick, David Chia is a qualified mortgage broker and financial planner but told MPA experience is equally important in providing the best outcome for the client. "The optimum solution is a mix of both – education plus experience."
Although he recognises the government's proposed measure will help filter qualified people into the industry with high technical knowledge, he says it doesn't guarantee they will be a better financial planner.
“In an industry where information in the profession changes all the time, you’ve just got to keep up with those things," Chia syas. "In understanding the different client scenario situations, I think the experience is more important.
“If I had to choose between the two, the experience I would find a bit more important than the actual qualification.”
If the government's proposition comes into effect, Chia says some may leave the industry but those that choose to stay and adapt to the change will make the industry stronger.
“Whenever there are changes, I always see opportunity there. We just try hard to adapt to it and try to adapt to it as early as possible.
“The guys that are keen and passionate about the industry will just keep going – they will adapt to it and find the best solution for the client."
