Joel Ronchi (left) and Rhett Das

Following a relatively calm period in regulation and in the absence of new pressing compliance issues, advisers’ attention is split between the uncertainty around the implementation of the Quality of Advice Review recommendations and a couple of old struggles.

Joel Ronchi, an ex-financial adviser and CEO at consultancy Fourth Line, tells Professional Planner constant change in regulation is one of the hardest things for advisers to deal with when it comes to compliance.

“The overarching theme at the moment is obviously the QAR recommendations,” he says.

“That is why a lot of advisers are looking forward to the QAR implementation, because they want it done. Uncertainty is hard.

Staying across it is why, in some ways, advisers are part of a licensee – because then they don’t have to worry about [the changes] themselves.”

Ronchi says that when the changes come through, they will have a direct impact on advisers. But even though they will, with an example being the simplification of fee consent which matters for advisers who have ongoing service agreements in place.

On the hand, replacing Statements of Advice with an advice record, as proposed in the government’s response to the reforms, won’t necessarily change the advice creation process.

“Something else will come in its place… there will be some kind of advice document or advice record so advice practices and licenses will need to adjust for that,” Ronchi adds.

At the same time, he stressed that advisers should focus on being prepared for the changes but this does not mean they should be “worried”.

One of the things that advisers have sometimes been not great at is forward thinking,” Ronchi says.