As Mao’s famous quote reminds us, a journey of a thousand miles begins with a single step. And with hundreds of steps now behind it, Australia’s financial planning community is well down the path to becoming a profession.
In fact, most of us are already there.
Concurrently, Australian consumers are on a converging path of increasing financial awareness and are seeking a trusted relationship with a professional who sits on their side of the desk, acting in their best interests.
This consumer-led dynamic will continue to shape our understanding of what it means to be accepted as a legitimate profession, I believe.
Our sector has made plenty of gains, yet there are flaws in the system, as we all know. Recent media attention has again highlighted the issues around systemic product sales under the guise of “advice”. Such regrettable practices, I believe, add to the momentum and will hasten the convergence between a growing profession and the consumers who demand it.
Milestones
It’s not all negative. From the financial planning side, hundreds of steps and multiple milestones have been reached in the quest to achieve professional status, and it is timely to pause and reflect on just how far we have come.
Many individual financial planners already identify strongly as “professionals” and have reaped the benefits of their efforts. Trust with clients ranks highly as a core benefit. Respect from professional peers is another. Commercial viability and prosperity are also potential benefits.
This is important, as I firmly believe that consumers wield the power to determine whether or not we have earned permission to operate as a fully- fledged profession.
In other words, it matters not whether we believe we have reached our professional destination, as the ultimate arbiter on this question is the end consumer.
To be blunt, consumers understand the dynamics of the old product sales model, and will increasingly demand a higher standard along with the certainty of dealing with a trusted professional.
This is especially true for financial planners operating within the safety of a large institution who may be subject to greater scrutiny about their underlying motivations. For such advisers, the concept of owning and demonstrating one’s “professional independence” is paramount.
Show, not tell
This is because the primary lesson I have learned about convincing others to join you on a worthy journey of change, requiring trust and commitment, is that you must “show, not tell” your intentions.
It is fine to speak in grand words and with the promise of change. It is quite another thing to demonstrably convince people of your purpose, ethics, vision and commitment through your actions, accountability and adherence to a rigid professional framework.
Yes, regulatory events such as the Future of Financial Advice (FoFA) and Tax Agent Services Act (TASA) changes may add to the sense of higher standards, either imposed on or embraced by our sector.
But relying on the minimum standards of regulation will not ensure our future success. It will not guarantee we have won the right to pronounce that our professionalism journey is complete. And it certainly does not call the end to what is essentially an ongoing and vital mission to positively impact the lives of all Australians.
