FAAA looks to India to pump up local adviser numbers

The Financial Advice Association plans to bolster growth in the advice profession through talent from overseas, specifically India.

FAAA chief executive Sarah Abood said during a webinar on Tuesday the association is looking at reversing the decline of financial advisers in Australia by recruiting fully qualified advisers and students from this region.

She said a memorandum of understanding has been signed with the Financial Planning Standards Board in India, an area “where there are a lot financial planners”.

“We have such a strong community with Indian heritage here in Australia,” Abood said.

“If we’re able to free up cross border education and opportunities for people who might be practicing or thinking about studying in India to come to Australia, we think that’s one way we can really help drive the pipeline.”

At the 2023 Professional Planner Licensee Summit, Abood told a panel the association saw an opportunity in looking abroad for talent to replenish adviser numbers as there were fully qualified financial advisers overseas who wanted to live and work in Australia.

During the webinar, the association’s chair David Sharpe said it was an “existential threat” to the profession if the decline in numbers is not reversed.

The scope for qualified advisers

Another topic from the webinar was the issues surrounding the new class of adviser, controversially referred to as ‘Qualified Advisers’, as proposed in Tranche 2 of the Delivering Better Financial Outcomes reform.

Abood said establishing the “scope” of advice that a qualified adviser can offer is essential.

“How will [the scope] be defined? Because what they can do is not as good as what a proper, professional, licensed financial planner can talk about,” Abood said.

“So how will we restrict their scope and how will we make it clear to consumers that the service they’re getting from this group is different to what they can get from a professional adviser and more constrained?”

The association suggested that the easiest way to limit the scope of the new class of adviser is to restrict them to only “engaging with the consumer on products that they already hold” to remove any complexity or confusion.

“It would also, in our view, meet the stated needs of the product issuers who said that what they’re looking to achieve with these reforms is the ability to service and support existing clients who don’t have the benefit of financial advice and probably would struggle to afford the cost of the financial advice engagement,” Abood said.

Furthermore, the association reiterated that professional advisers are unhappy with the title of this new class of advisers.

Minister for Financial Services Stephen Jones told the Investment Magazine Chair Forum in January, held by the sister publication of Professional Planner, that he would likely change the name but has yet to announce a new moniker.

“The name is incredibly important for many of our members, and I think the government has underestimated how important that is,” Abood said.

“Many members don’t want to see the word adviser in there and we need our members to be able to offer this class of advice.”

This association has taken this feedback from advisers into account as well as the scope for ‘qualified advisers’ as part of their advocacy commitments.

Expanding the mission

The association’s mission is moving beyond simply the practice of advice to the “business of advice” more generally.

The business of advice is “an area where many members are looking to [the association] to provide more support in running their businesses, as well as in their professional development”, .

The association has established three priorities regarding the business of advice and the success of its members, the first being unconditional support of its members.

Abood emphasised that the association’s purpose is to support its members and so it is the first priority.

The second priority is the serious need to grow the profession and the third to lead the profession with a “bold, trusted and influential voice”.