Advisers ask: Is it worth it?
Advisers nearing “retirement age” say they’re planning to opt out of advice rather than transition to the new regime, but not everyone is convinced it will actually happen.
Monday, May 6th 2019, 6:00AM
Tony Dench
Two advisers, both aged over 60 but who did not want to be identified, said they had decided it was not worth going through the process to receive a full licence.
One said, after many decades in the industry, the idea of being required to go back to study for a level five certificate was enough to put him off.
He was exploring options to remain involved in the industry that did not include providing advice to clients.
Nick Stewart, of Stewart Group, said he expected it to be a common sentiment, particularly for those who are currently registered financial advisers.
“As not only do they have to licence themselves or seek a home with a FAP but also get to level 5. For some it would not be worth it – the cost and the down time.”
But a spokesman for the Ministry of Business, Innovation and Employment, said it did not expect the shift to be significant.
“Based on feedback we have received from the industry, MBIE does not expect there to be a significant reduction in the number of financial advisers in the new regulatory regime.”
At Share, chief executive Tony Dench said he expected little would change for current AFAs.
For the RFAs, the biggest change will be the likely requirement to get level 5 during the competency safe harbour.
“In Share, the common brand, processes and central governance will assist. Some will retire but may have been planning to anyway rather than as a result of the new regulations.
“I can certainly understand that, for RFA advisers outside a group such as Share, meeting the new requirements on their own may be daunting. There is support and assistance on offer from various sources for those advisers who are planning to become licenced on their own."
Financial Markets Authority data showed there were 110 advisers aged over 65 and 442 ages 55 to 65, of a total 1800.
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