Winning the Long Game for Practices and Licensees

For financial planning to evolve into a true profession, stakeholders must focus on the long game by building trust through capability, character, and communication. These foundations represent the long-term future of advisers, practices, and advice groups.

Foundations of Trust
Capability: Trust in the adviser’s expertise, professionalism, and accreditation system.
Character: Assurance that the adviser operates with the client’s best interests in mind within a fiduciary framework.
Communication: Consistency and clarity in all client interactions to reinforce trust in the advice process.

The journey to achieving these pillars of trust has significant challenges, but they define the long-term vision for financial advice as a profession.

Core Tenets for Long-Term Success

1. Pure Revenue
Practices must derive 100% of revenue from professional services, transitioning away from conflicted remuneration models. Clear communication of advice value to clients is critical for this shift.

2. Data Cohesion
An integrated financial services model using a unified advice platform with multiple data sources (e.g., financial planning, banking, accounting) can transform the client experience and reduce costs.

3. Professional Ownership Structures
Sole ownership models should give way to professional ownership structures, with advisers achieving certification under a legally recognized professional framework.

4. Proper Governance
Governance processes, including independent chairs and directors, ensure strategy formation, execution, and accountability in integrated firms.

5. Licensees as Value-Added Advice Groups
Licensees should evolve into value-added advice groups, offering professional networks, client value enhancements, and operational efficiency for practices.

Forming Your Long Game Strategy
Navigating industry instability requires a clear long-term strategy. Consider these key questions:

• What will the consumer value and genuinely trust?

• What’s real versus anchored in outdated biases?

• What’s the most efficient and effective model to provide value to consumers?

Success depends on clear strategy, governance, trusted resources, and unwavering dedication to execution. This journey extends beyond financial planning to integrate accounting, mortgage broking, and insurance into a unified financial services profession.

Let’s focus on the long game and embrace this opportunity for transformative change. Best of luck in this noble profession—what you do profoundly impacts lives and society.