FSC CEO Richard Klipin presented the findings of new research at the FSC Get in Shape summit last week. Unlocking the Potential of Professional Financial Advice was centred around the response of those within the industry to the following questions:
· How do you feel on the other side of Covid?
· How ready are you for upcoming regulation changes?
· What is your outlook for the future?
Klipin noted that findings indicated that the industry is in a time of change with a transition from a sales led approach to an advice led approach. With this change it expected that there will be changes to business models, remuneration models, and client connection methods. The research also showed that advisers had a positive outlook on thepost-COVID-19 reality.
FSC CEO Richard Klipin unveiled the new research entitled, “Unlocking the Potential of Professional Financial Advice” at the FSC: Get In Shape events this week.
The research shows that the financial advice sector has remained resilient despite the challenges of Covid and regulatory change while continuing to provide ongoing value to Kiwis.
The FSC research committee asked the advice community three questions.
1. How do you feel on the other side of Covid?
2. How ready are you for upcoming regulation changes?
3. What is your outlook for the future?
Klipin said that the conclusion of the research was that “We are in a huge moment of change. We are moving towards the much more level footing of an advice-led [rather than a sales-led] conversation.
“Because of this, business models, remuneration models, how advisers connect with their clients are all going to change. It feels like this moment is unleashing an incredible opportunity for the industry.”
As well as reaffirming previous research that highlighted the benefits of financial advice during times of turmoil, the research also showed that advisers were feeling that they could weather the post-Covid storm.
“What we saw in Covid was a change in how people operated their businesses. The key change in this sector has been the pick up and the take up of technology.
The research found that many advisers are preparing themselves for the upcoming regulatory changes, with 57.5% of advisers reporting that they were preparing for changes relating to FSLAA and 32% of advisers saying that they would be ready when the law came into place. The research also highlighted that there generally was a positive response to the upcoming change.
When looking at how ready advisers are for regulation change the numbers are looking even more positive.
“At the end of last year, 57.5% of advisers said that [they] have continued to ready themselves to implement the required changes in FSLAA, 32% said they will be ready when it begins.
“This notion in some parts of the sector [that some are] wondering how ready are people? How many people are out there not doing anything? This data says that most advisers are well down the track.”
According to the research most advisers have a positive outlook for the future. Many of the respondents felt that the incoming regulation changes are positive for customers, and for advisers both. Click here to read more
In other news
FSC: in response to the Lockdown announcement and upcoming regulatory changes, the FSC will be running a Zoom session for those registered for the Christchurch and Dunedin Advice Summits on Wednesday 17 February 2021 from 08.00 until 10.00.
The Zoom session schedule is:
0800: Welcome from FSC, CEO Richard Klipin
0805: Opening Session: Hon Dr David Clark, Minister of Commerce and Consumer Affairs
0815: Embedding the changes in the New Zealand Advice Sector
0905: Comfort break
0910: Disclosure – Focusing on your responsibilities ahead of 15 March 2021
0935: Helping New Zealand’s advisers to grow – tools, tips and insights
0955: Close - FSC, CEO Richard Klipin