Planning sector looks forward to a positive 12 months, says Tynan

As the financial services industry returns for another year, Connect Financial Service Brokers (Connect) CEO Paul Tynan says the sector can look forward to a positive 12 months as the building blocks are in place for growth.

Commenting further, Paul Tynan points to Australia’s aging population which will require advice in many areas and in doing so provide planning firms numerous opportunities to expand their operations and service offerings.  Advice will be required in the following areas: retirement planning, estate planning, succession planning, business planning, mergers and acquisitions, aged care planning, SMSF advice, mortgage/debt advice, general insurance advice and risk insurance advice.

All of these areas present excellent organic growth potential.

Although positive about the prospects for the coming 12 months, Paul Tynan cautions the Financial Services industry to set its sights on what it can control and not focus on what it can’t.

“What the recent FoFA and government budgetary issues have highlighted is that the Australian public will not be taken for granted and will always seek a balanced outcome.  Lobby groups continue to push personal agendas but fortunately we always find middle ground which is a hallmark of our democratic culture.  We now have a fair balance on the financial planning reforms and must capitalise on them to move forward leaving the past behind”, said Paul Tynan.

Over the past few months the number of M&A enquiries received by Connect has increased significantly as individuals and practices search for new business structures and roles post FoFA.

Paul Tynan attributes this movement to ‘crystallisation’ as the transparency between aligned and non-aligned financial services structures has been exposed.  The new education standards to be rolled out throughout 2015 will continue this trend of activity as more individuals (Baby Boomers retiring and individuals unable or unwilling to adapt) choose to leave the industry.

Australia has a sound retirement system which needs to continue to evolve and adapt in order to be affordable and support the needs of the nation’s ageing population.

The economy is fundamentally sound however the next generation entering the workforce will require Australia to focus on its strengths which will be underpinned by technology and a free trade global economy.  Future employment will be dominated by small businesses which underpin the country’s strengths of excellence in education, agriculture, professional services and low sovereign risk democracy.

The world’s population is expected to grow to 9 billion in 2015 and this will present challenges and opportunities moving forward.

Paul Tynan concluded, “As well as a sound local economy, Australia is also in the right part of the world geographically to take advantage of the Asian Century and as the region’s middle class grows, so to will demand for premium foods, agriculture products, travel, education for their children and other opportunities our country has to offer”.

“The majority of these opportunities will be fulfilled by small business and as a result, Australia needs a new generation of entrepreneurs with spirit and determination to seize the moment and export our professional services and premium/green products demanded by this expanding middleclass.  If we dwell on the past, maintain old structures /habits and not embrace change this future of opportunity will leave us behind in its wake!”