The financial planning industry needs to come together and send the message that it has been proactive in lifting education levels and ethical standards well before they are mandated, including making a commitment to employing and training the next generation, a summit has heard.
At the annual Professional Planner Licensee Summit, delegates at one session discussed the introduction of the Financial Adviser Standards and Ethics Authority, the body responsible for setting the benchmark for professional standards. One contributor stressed the next few years would mark the last opportunity financial planning has to “change the narrative”.
But a few in the room argued businesses needed to start making changes now – such as improving formal and informal education – to prove the industry is serious about its professional status.
“I’m tired of being behind the regulator,” the summit heard. “I’m tired of being behind the eight ball. Let’s get ahead of professional standards. We don’t have to wait for the board; we can push ahead.”
Several of the participants said they wanted financial planners to be viewed in the same way as doctors, lawyers and accountants in terms of training and sensitivity, but agreed the industry is far from that.
Show, don’t tell
In order to become a profession, large financial planning firms need to set concrete goals around recruitment and training, like accounting firms do, the summit heard.
“If you think about the major accounting firms… we know the big four take on about 2000 to 3000 graduates a year…Why wouldn’t we collectively go out and say, ‘Next year this profession will employ 2000 graduates?’ If we’re going to be recognised as a profession, we need to start doing that, start showing that.”
Other ideas mooted to elevate the industry to a profession included mentoring programs, work experience and partnerships with other professions.
Professional Planner’s two-day summit gives dealer group leaders the opportunity to canvass ideas relevant to their businesses, including the future of licensees, their relationship with regulators, innovation and staff engagement.
