Clockwise from top left Greg Cook, Alisdair Barr, Matt Lawler, Kirsten MacDonald, Billy Amiridis and Dianne Charman

Matching younger clients and advisers could help reduce the advice gap for millennials and Gen Z by having planners start out by giving limited advice.

Speaking at roundtable hosted by Professional Planner, AMP Advice managing director advice Matt Lawler said there should be a push for younger people to come into the sector to deal with clients.

“Even if it’s a restricted level or around clients in their age group dealing with insurance or budgeting,” Lawler said.

“This is a good time for us to say how do we give younger entrants the opportunity to start earning revenue earlier because it is very difficult for a young person to earn a $4000 to $5000 fee, but what they can do is talk to younger people about simple things like salary sacrificing into super or investing smaller bits of money.”

Lawler said in the proposed regime they would not have to deal with the full Statement of Advice process and only instead give smaller pieces of written advice.

“…And charge smaller fees – a couple of hundred dollars or a thousand dollars – as opposed to the current regime which is a premium model where it’s all or nothing and a lot of younger people are missing out.”

Lawler said having thousands of people exiting the profession but only a few hundred entrants has created a huge supply gap.

“We’re at an inflection point – post-Royal Commission there were lots of rules and regulations being imposed on the sector which was making it economically unsustainable,” Lawler said.

“At least we’re now getting some discussion. We have good dialogue with [Quality of Advice Review lead] Michelle Levy and her team about unwinding some things that don’t make sense for a profession that has all the belts and braces that we have now.”

Levy will hand in her ‘good advice’ proposals on 16 December with few changes. Lawler previously told Professional Planner his dealings with Treasury created optimism the proposals would be picked up.

“Some of those changes can have an impact on younger people coming into the sector and starting to build businesses and make it economical for the practices that sponsor them,” Lawler said.

Personal experience

Invited to the roundtable was Holly Rohrlach who is seven months into her provisional year at Profit and Retirement Planning.