Survey results released by the Financial Services Council (FSC) suggest almost 60% of advisers are considering a self-licensing option under the new adviser licensing regime.
The survey was completed by advisers who attended the FSC Navigating Regulation Advice Summit roadshow, held in late November last year, the majority of whom said their advice includes life insurance.
The responses revealed that more than half of advisers intend to obtain their own licence while operating a small one-to-two person advice business (33%) or a licence for their advice business of more than two advisers (25%).
More than one third of advisers (37%), however, said they were prepared to work for someone else’s business who had a licence, while 5% said they would retire from the industry.
On the type of help they would like from the industry to achieve a smooth transition, 71% of respondents said they would like assistance in understanding how the changes would affect them while 47% indicated they need help on how to get a licence.
Speaking with RiskinfoNZ, Financial Services Council CEO, Richard Klipin said that although there is still more information to come, the Summit was designed to engage advisers and provide them with all the details known so far.
“The purpose of the Navigating Regulation Roadshow was to ensure people join the discussion, get informed and start to make active choices, understanding that there’s still a lot of clarity and clarification to come,” Klipin explained.
He said three key questions advisers can ask themselves now are:
- What business model is going to work best for you in the new environment?
- What kind of clients will you best look after and service?
- How will you best meet the new regulations and prosper?
The FSC is now in the planning stages for its next Summit event.
“We’ll continue to deliver information and education opportunities to test out thinking and help people navigate the change,” said Klipin, who added that the new environment advisers will find themselves in is about lifting trust and confidence in the sector.
“Standards and professionalism…will lift as well and when those things come into play, [advisers] will examine what’s the right business model for them and the way they look after their clients,” he said.