The Financial Planning Industry in Australia has me perplexed, just like I used to be when my math teacher taught algebra!
-Regulatory costs are increasing
-Leading to financial planners leaving the industry
-Leading to less people receiving advice but more people wanting advice
The table below highlights the situation well:
| Year | Consumers Who Got Financial Advice | Number of Advisors | Consumers Who Want Financial Advice but are not Receiving It |
| 2018 | 13.9% | 27,959 | NA |
| 2019 | 12.2% | 23,511 | 21% |
| 2020 | 11.2% | 20,674 | 30% |
| 2021 | 10.1% | 17,351 | 29% |
(Source: 2022 Australian Financial Advice Landscape)
So basically we have an overregulated market, leading to people wanting to get financial advice, but being unable to.
Australians with a shit ton of cash in the bank are still able to economically see a financial planner.
Australians with a smaller amount of cash in the bank (like me lol) face a dilemma.
If there was a shortage of hairdressers and the prices skyrocketed we would all get the clippers, watch a few youtube videos and have a crack!
That is what Australians who cannot access a financial advisor were doing.
The issue is ASIC has clamped down on financial content online, making this more challenging.
Making the situation even weirder:
-An industry is overregulated leading to pent up demand
-People try to self educate, leading to some dodgy operators
-ASIC shut down online content, leading to more pent up demand for affordable financial advice
The Solution
-Hopefully this self corrects over the next few years with well thought out deregulation
-An Australian with a moderate income and moderate savings should be able to receive good financial advice at a reasonable price.
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An interesting point! Thanks again Aussie Strategy