There was plenty of fake news to wade through and a small mountain of alternative facts to scale during the two months I was away. A lengthy break at a remove from the day-to-day machinations of gathering and reporting news provided an opportunity to sit back, take stock and focus on a bigger picture.
Early on, the big story was the circus that sprang up in place of US politics. It is first-rate entertainment, as long as you don’t remind yourself too often that a) President Donald Trump accurately reflects the views of a considerable part of the adult US population b) he’s got access to the nuclear launch codes and c) some of our domestic political nut jobs have started to take a lead from him, emboldened by what they perceive as his success so far.
But what started as an amusing penchant for pinching out an early-morning tweet now increasingly looks unhinged. A question of perspective arises when virtually no distinction (in terms of Twitter-worthiness) is drawn between allegations of wire-tapping by a former incumbent of the White House, and Arnold Schwarzenegger quitting as host of a TV show.
No good arguments against standards
Perspective is something that seemed to be in short supply around the financial planning space as well. What is one to make of an argument against new ethical, education and professional standards that has as its central tenet that new standards should not be welcomed because that would mean criticism of the industry was valid all along?
There’s never a bad time to take a two-month break – let’s be honest. But some times are better than others, and it was a touch frustrating to be out of action when the sector’s standards finally came into being.
Legislation enacting new standards is unequivocally a good thing and a watershed for all financial planners. It changes the game. Together with other reforms, including but not limited to, the Future of Financial Advice (FoFA) and Life Insurance Framework (LIF), there is now a reason for the public to start to reconsider its view of financial planning.
We’ve got the raw ingredients. But I watched enough cooking shows over the past two months to know that good ingredients alone aren’t a guarantee of an appealing dish. A huge amount still depends on the recipe and the chef.
The need for change isn’t even worth debating anymore. It’s like continuing to argue the case for climate change or vaccination. The jury isn’t out, the jury has delivered its verdict, been thanked by the judge and gone home to put its feet up to watch Nigella Lawson (and marvel at her obsessive need to pickle).
The name of the game now is implementation. Financial planners can continue to resist change but the ones who succeed will be those who learn to live up to recognised professional standards. That means a whole lot more than just putting clients’ interests first.
Universities and others have to create effective educational pathways for the planners of the future. Employers need to recognise those qualifications and provide professional development opportunities for those they hire.
Existing planners have to attain, where necessary, additional skills and qualifications demanded of them. And those who can’t stand the heat need to get out of the kitchen, quickly.
The ultimate justification for formal standards
A certain amount of perspective is necessary to remember what all these changes are ultimately for. I encountered some of the reasons during January and February; for example, couples living the dream of retiring to spend time together caravanning around the country. It’s beside the point that when I encountered them it always seemed to be when they were labouring up a hill at 50 km/h on a one-lane road.
For various reasons, my break also included some up-close encounters with financial institutions and it has to be said that the development of a strong financial planning profession is absolutely critical, if only to spare the public from those institutions.
While some acted decently, others were just big, greedy and stupid – and arguably at one of the worst possible moments in life.
A vibrant, confident and strong financial planning profession is a great objective, for many reasons. Among them, let’s not overlook its role as a first-line defender of the public against institutionalised idiocy.
