I’ve often wondered what we can do about why some people think that financial planning businesses are evil or fraudulent. Since when did making a profit become illegal or amoral?
The Financial Services Reform Act has been in effect since March 2002 and there have been many changes since then. That’s over a decade of almost continuous change and regulation yet these damaging and often erroneous perceptions still linger.
I’m sure the answer lies largely in the area of ‘trust’, yet whilst we’re see examples in the media of accountants or lawyers who have broken the trust of their clients, the public and government response is very different. We don’t hear the same angry screams for more reform or regulation that we see when financial planners do the wrong thing by their clients.
So I’m left to wonder why this is the case.
As a Recruiter, I’m seeing more and more young people choosing financial planning as a Degree and long term career choice. Surely, if the vast majority of financial planners were doing a bad job for their clients, we wouldn’t be seeing this growing trend in young people looking to enter the profession, would we?
And if this is true, then doesn’t it follow that the government should treating financial planning the same way as it does other professionals like accountants and lawyers?
In fact, I’d go as far to say that the government and financial planners should really be working in partnership as we all face the reality of an ageing population and longer life spans.
Otherwise, what else are they planning to do to resolve this problem and ensure that everyone is taken care of in the coming years?