The original version of this paper was written in August 2018 – however, we have included new content to reflect likely impacts from the Hayne Royal Commission Final Report (RC Report).

Post RC, financial services firms will continually need to look at the long game to ‘future proof’ their businesses and continue to deliver trusted advice through a system free of product and conflicted purpose; and one founded on three foundations of trust…

Financial Advice businesses and Advice Groups playing the long game successfully

For financial planning to take its place as a profession, stakeholders need to look at the long game and explore a system free of product and conflicted purpose, and one that is founded on three (3) foundations of trust.

Further, there are five (5) core tenets that advisers, practices and advice groups need to aspire to in order to ‘win’ the long game.

Individual Certification of Advice Professionals

When I wrote my first paper May 2017, I argued that a true profession has an underlying structure supporting its professional mission. It currently doesn’t! You won’t find any profession where the professional operates under a licensee, often with commercial interests, which in turn is accountable to the regulator (ASIC in this case). The financial planning sector can only take it’s place as a profession under the Professional Standards Legislation if it’s structure and culture reflects other professions.

Since the first paper many people have asked technical questions, but also what it means in a broader business context. This paper addresses both these areas.

Financial Planning as a Profession and birth of the Advice Groups

Over the last eight years, financial planning has been through myriad inquiries and legislative changes. Yet one of the most significant chapters still lies ahead, with the commencement of the new standards body, the Financial Adviser Standards and Ethics Authority (FASEA). Many commentators have rightly pointed to the vital importance of this body in the development of the financial planning profession.

But is it enough? In my view, NO.