As the Royal Commission into the Banking, Superannuation & Financial Services Industry gets underway Connect Financial Service Brokers (Connect) CEO Paul Tynan said he expects an acknowledgement of the fundamental issues when you combine banking and advice services.
Commenting further Paul Tynan said, “The essential difference is that banking has a short-term time horizon and advice has a long-term time horizon. This most basic of contrasts has been the foundation for disastrous decision making resulting in high profile failings that in turn led to calls and the need for a Royal Commission.
“Furthermore, the five pillars of financial services have served its purpose and is becoming more and more irrelevant with advances of the new digital environment”.
It’s imperative for the future well-being of the sector that the Royal Commission review financial services in its entirety i.e. banks, industry funds, super funds, investment managers, industry associations and regulators.
The next two decades in particular will be uncharted territory for the nation as Baby Boomers transition into retirement and the financial services industry must be ready.
The challenge for regulators and businesses alike is how they deal with this whilst shedding an obsolete structure designed to support product, distribution and third-party participants – while simultaneously developing new frameworks demanded by customers to deliver digital era services with transparency and rigour.
One of the first post Royal Commission casualties will be business advice models based on the ownership of clients. The transfer of licensing away from the dealership level to the adviser level will also be another inevitable outcome.
With so much at stake, Paul Tynan offers the following observations, comments and recommendations that he will be relaying to the Royal Commission:
The Five Pillars
Licensing & Advice
Education & Ongoing Professional Development
Lessons Failures & Inquiries
Other Issues & Priorities
The Regulatory Outlook
The Brave New World
Issued by Connect Financial Service Brokers
CONNECT FINANCIAL SERVICE BROKERS