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2021, a year Our industry and growing profession continued to face the test of fire but we are emerging from it stronger with self-evident growth opportunities.
We have our challenges the most imminent being platforms having signed client consent authorities and allowing the payment of ongoing advice fees. The cost of doing business continues to grow and correspondingly the cost to consumers continues to grow. There are less PI providers so premiums will rise, the risk industry is at risk of collapse and still some legislative uncertainty in LIF review, wholesale client designation and vertical integration. The lack of talent will continue to inhibit growth but hopefully the best and brightest in accounting and commerce will see the opportunities as we do. There should be an introduction to Financial Planning in both accounting and commerce degree courses. Awareness would also be raised if financial literacy was also introduced in secondary education. We have a skills shortage and technology will be of assistance in productivity gains.
Our industry and growing profession faced the test of fire with the greatest amount of legislative change ever seen but we are emerging from it stronger with self- evident growth opportunities.
Mega Industry Funds are being created but the advice industry is now circa 60% Independent with committed professionals representing and directing the course of our future. The sausage factories of homogenous large-scale advice have been shut down and we now see the rise of the super boutiques ($1b plus), open APLs, growth of individual AFSLs, better client engagement tools, rising consumer demand and the consumers’ best interests are front and centre in all decision-making.
These last 3 years have been very painful but it represents the start of a new and exciting chapter with great opportunity but only if we are ready for it. In this issue, I examine recent deal activity, valuations, industry changes, growth opportunities and predictions going forward.
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