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Brokers looking to diversify into financial planning should be wary of labelling themselves as 'planners' unless they are adequately qualified.
Yesterday, The Adviser published results from the annual Young Broker survey, which showed the rate of young brokers embracing financial planning has increased dramatically.
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After reviewing the results from the survey, Mark Rantall, chief executive of the Financial Planning Association (FPA), said both industries were in need of young talent.
“There are more financial planners retiring than entering the profession,” Mr Rantall told finance publication ifa. “So we do need a new generation coming through and we welcome that.”
Mr Rantall said it was great to see new entrants to the planning space, although he remained cautious of unqualified individuals.
“People moving into financial planning aren’t viewing RG146 as the requisite for providing competent and holistic financial planning advice … We encourage people to move into the profession, which would require certification,” he said.
Mr Rantall claimed that providing limited advice such as recommending risk products isn’t really financial planning advice.
“My sense is that many of these people may be offering product advice rather than holistic financial planning advice, which is a good start but shouldn’t be labelled as financial planning,” he said.
“There are a lot of people that call themselves investment advisers, financial advisers or financial planners, right from the property sector to the mortgage broking sector to the full advice sector, which I think can be very confusing for consumers.”
