11% of planners to leave industry once new education standards kick in

A survey of financial planners has found that 11 per cent are going to leave the industry if all recommendations from the Royal Commission are put into place. The Investment Trends’ 2019 Licensee Satisfaction Report shows resilience in the industry, despite it potentially losing a tenth of its workforce.

Other key findings from the report include:

  • Seven per cent of advisers surveyed said they would not be providing advice once the FASEA education requirements came into effect in 2024

  • Affordably servicing clients was reported to be a concern as the new regulatory environment continues to shift with 43 per cent of advisers saying they are facing hurdles - compared to 2018, where 33 per cent said affordability was a big problem

  • Most advisers are sticking around

  • Sixty-nine per cent of advisers said they are looking to technology to help affordably and efficiently serve clients

  • Around a third operate their own Australian financial services licence or belong to a self-licensed boutique

  • Fifty-five per cent intend to stay with their existing dealer group

  • Ninety-one per cent were seeking advice from their dealer group

The survey was conducted on 1,030 financial advisers in May 2019.