The FASEA Code of Ethics commences on the 1st of January 2020. In just a few short years, all existing advisers will have to meet the Education Standard, which is an approved degree. In short, 2020 is going to be a busy year for current and aspiring planners and advisers doing courses, preparing for the exam and more.
The big question on many candidates’ minds: is it all worth it? After all, are financial planners and paraplanners in demand?
Logically, once the barrier to becoming a financial planner is higher, fewer people will move in to the profession. There will be a greater share of clientele left for those that do make it through.
As for demand for services from the general public, the spirit of FASEA and the new standards is to reinvigorate the sector and inspire public confidence in professional financial advisers. In other words, it’s meant to get rid of the dodgy operators. Since November 2019, ASIC’s Financial Advisers Register contains more adviser information than ever before. It’s easier to look someone up and check their cred.
There are some interesting trends in terms of financial advice business, too. For example, millennial uptake of financial planning services is on the rise, especially as many young people seek expert advice to pursue big goals like home ownership. Many sole practitioners have tailored their practice to younger clients. They’re seeking to form long term client relationships as clients build wealth over time, rather than going exclusively for clients such as established UHNWI (ultra high net worth individuals). It’s entirely possible that these types of small, personalised practices will grow faster than institutional planning services as a proportion of the industry.
As for official stats, the government projections on financial planning as a profession say it’s set to grow by 7.2% in the five years from 2019 to 2024. That’s an encouraging number for anyone considering entering the profession as it goes through regulatory changes.
- You don’t even need to be a registered financial planner to ride the wave that is the advice industry. There are tons of other pathways that a financial planning qualification can take you on, including:
- Customer service
- Practice management
The Monarch Institute Diploma of Financial Planning is a great starting point for anyone who’s keen to get in to this dynamic industry, but doesn’t want to over invest or limit their opportunities. This course currently isn’t accepting enrolments, but our brand new Advanced Diploma of Paraplanning is a great choice for anyone looking to get into the financial services industry. We offer great pathways to University of New England courses, as well as expert mentorship for other career options. Check out the course page today.
Sources: Joboutlook 2019