New research by the Financial Planning Association (FPA) has found the commercial environment is increasingly challenging for advisers.
The research, conducted by Investment Trends, has found only 61 per cent of planners reported profit growth in 2016, down from 72 per cent in 2014.
Across the sector, planners say their top challenges are compliance, efficiency and demonstrating value to clients.
In the survey, members praised the FPA for its assistance helping them navigate regulatory change. Almost all members (99 per cent) said legislation and policy updates from the FPA have been important to them and their business.
What FPA members want
Commenting on the results, FPA chief executive Dante De Gori said: “The membership is obviously saying, ‘We’re happy with the direction the FPA is going and the things we’re doing.’
“Updates and communication around legislation and regulation are our best feature. Members also rate our ability to raise professional standards for financial planning.”
De Gori did acknowledge there are certain areas of the FPA’s work it could improve.
This includes providing further services to support members’ businesses, such as helping them win new clients. Members also want more assistance to reduce the cost of regulation for their business and improve the efficiency of their firms.
“They want us to do more to help them make their advice more effective, and to make it easier for them to encourage more Australians to access financial advice, which is an area of focus for us,” he says.
For instance, De Gori said the association’s Money & Life website is an example of a project that helps advisers engage with Australians about the importance of financial planning. It also encourages consumers to look for an FPA member when they want financial advice.
The site is a portal to help consumers improve their financial literacy and find a financial adviser in their area.
Knowledge management
Survey results also show the proportion of non-Certified Financial Planner (CFP) members looking to pursue the CFP designation continues to increase. A record 29 per cent of non-CFP members are obtaining their CFP designation at the moment.
The research also showed a preference among advisers for the FPA to provide continuing professional development.
“This tells us that we need to do more to provide continuing professional development content options for members, so that’s an area of focus for us,” De Gori said.
He expects education standards to become an increasing focus for the FPA as education levels improve across the sector.
“It’s going to become a more important aspect of what we do, not just us but for the whole industry in terms of delivering quality education content for advisers. Many are asking us to deliver that content. Obviously, there are other choices in terms of getting CPD and members want variety. But they also rely on a professional body to provide their core education, especially around professionalism and ethics.”
As a result, the FPA is gearing up to meet this need.
