GUEST COLUMNIST – RYAN EDWARDS
Ryan Edwards, Managing Director of The Adviser Platform, writes that while financial advisers are aware of the incoming regulatory regime, few fully comprehend the impact it will have on their day-to-day practice.
As 2020 continues its pattern of disruption, one thing remains certain – regulatory change is imminent.
The new regime will herald, among other things – through enhanced processes, record keeping and oversight – a far greater level of professionalism for the industry.
There has been an abundance of information surrounding the regulatory change, and it’s fair to say that many in the industry have information or change ‘fatigue’.
There has been no end of talk about ‘what needs to be done’, but many are not focusing on how they will change their business to ensure their obligations are met.
Consider this fictitious example.
Adviser (Mary) has engaged an external compliance expert to help in preparing her process and policy. She’s plugging away at her Level 5 certificate while juggling a client book and servicing new ones. Mary has diligently reviewed all the information sent from the providers and industry bodies and feels reasonably well placed.
However, there is a disconnect. Mary is busy. She has an advice process that she follows, but often finds time gets in the way of ensuring it is followed consistently.
She has a CRM, but as the days and weeks roll on, the attention to detail and setting time aside to make sure it is updated, with all the notes and documentation from her hard work being professionally recorded, is slipping.
Her policy anniversaries build-up, and while she is great with clients requesting a review, she concedes that not all clients are contacted and that her process is not consistent.
She’s juggling her business across her email, a file sharing account for client documents, and a CRM that’s slowly evolving into an expensive address book.
This situation will lead to a stressful and difficult audit and does not give Mary the ability to grow and scale her business.
Fact is, you can have the best processes in the world, but if you lack the time or resources to manage them and ensure they are followed, they are not worth the paper they are printed on, and you will fall short in meeting your obligations.
The new regime, which starts on 15 March, brings an exciting opportunity for all professional advisers to strengthen and thrive, and while on the surface the new obligations are not necessarily complex, they will be time consuming. They will require a level of resourcing, in terms of time and expertise, that many advisers neither have, nor can afford.
Now is the time to ask – I know what needs to be done, how am I going to ensure I have the resources to actually make it happen?