"A perfect storm for advisers" : Q&A with Lifespan Financial Planning's Jill Tunkin
Lifespan Financial Planning national practice manager Jill Tunkin is heading up the group's newly formed Lifespan Partnership offering for self-licensees. She spoke to Industry Moves about the many challenges facing financial planners at the moment and how those that can adapt to the changes will eventually be better for it.
Lifespan Financial Planning national practice manager Jill Tunkin is heading up the group's newly formed Lifespan Partnership offering for self-licensees. She spoke to Industry Moves about the many challenges facing financial planners at the moment and how those that can adapt to the changes will eventually be better for it.
What prompted Lifespan to launch Lifespan Partnership?
Primarily because of discussions I had with a few of the Lifespan authorised representatives who registered an interest in moving into their own licenses for succession planning purposes, but did not want to lose the support and contact with Lifespan itself. I also felt that building such a support service that was backed by the resources of Lifespan, would be an attractive offering all round and a natural extension of the existing licensee services offering.
What kind of interest have you seen so far and what kind of services are most advisers interested in?
Interest has been steady. The feedback has been overwhelmingly positive regarding the flexible nature of our offering, particularly in terms of paying only for the services utilised. The Partnership Program with its plethora of related Partner services has also been well received. I think our offering embodies a modern transparent and accessible approach.
Will self-licensees still come under the Lifespan umbrella?
Yes, the backing of Lifespan and its resources is an important feature, however the Lifespan Partnership offering is specifically designed to suit self-licensees and there is certainly a difference when it comes to catering for a self-licensee's typically fiercely independent nature.
Do you think there is a trend for financial planners to break away from larger (bank-aligned etc) dealer groups? Why or why not?
Absolutely, and the stats are certainly showing this. With many of the banks exiting the advice business, many established authorised representatives simply see their own AFSL as a natural progression for their own advice journey, or as a viable exit strategy if they are not planning to practice beyond the Financial Adviser Standards and Ethics Authority (FASEA) education deadlines. Furthermore, given the stain that the Royal Commission has left on the banking sector, many advisers are looking to distance themselves by breaking away.
What do you think is the biggest challenge to the industry at the moment and how can it be overcome?
Without a doubt, for those continuing to provide advice, juggling newfound FASEA education requirements, when combined with normal day-to-day client demands is presenting enormous strain on many, especially those with young families, or those unfamiliar with the routine of part time study. Then, if you consider the fact that compliance and operating costs are increasing dramatically and adviser income streams are being reduced or diluted, it really is a perfect storm for advisers.
For those deciding to exit from the industry, the challenge of carefully structuring their own succession plan, can be a considerable challenge, with many moving parts and often an uncertain path forward. Uncertainty can often be the biggest driver of anxiety. It is just very draining at the moment for an industry that for the most part, attracts people who just want to do the right thing by their clients, and whom genuinely want to make their client's lives better.
The upside is that those whom adapt to the changes, stay focused and progress their businesses, will be better for it. Their businesses will be supremely efficient, highly regarded and highly sought after. So those whom navigate this disruption, will in the end be the great winners for both their clients and the advice industry as well.
