The regulator focus on rapidly growing financial planning aggregators and on new training and assessment standards for financial advisers means that financial planning groups need to consider quality outsourced technical and financial planning strategy solutions.
There’s a justifiable fear that rapid acquisition activity may distract financial planning groups from their core business of servicing clients due to difficulties in ensuring that support services keep up with the size of the group and in turn compliance obligations may be breached, putting licence conditions at risk.
The increasing compliance burden is a challenge for advisory groups but also means individual advisers may need assistance to offer clients the most up-to-date information on legislative changes and relevant financial planning and technical strategies.
The regulator has also announced proposals for a new training and assessment framework for financial advisers which, if implemented, would mean all advisers may have to pass a financial services competency certification exam and undertake a Knowledge Update Review every three years on changes to laws, market issues, new products and professional development requirements
New training and assessment standards will raise the bar for financial advice, but will also place added pressure on advisory groups.
Increasing regulatory and compliance pressures and a move to fee for service are prompting advisory groups to consider an external outsourcing solution to ensure support services keep up with the needs of the group to offer timely client-focused financial planning strategies.
