The new year is well and truly upon us, and here at the FPA - and no doubt in your business as well - we've hit the ground running. After 2009 bringing so many challenges for financial planners and clients, it's great to say goodbye to the 'noughties' and focus on a bright future. A recession appears to have been avoided, through a combination of sound business practices, strong regulation, and government intervention. And our sharemarket is definitely bouncing back, having achieved a 37.6 per cent return for 2009, according to the latest Mercer Sector Survey.
The job market is also rebounding, with a fall in the rate of unemployment to 5.5 per cent, and four consecutive months of rapid jobs growth. Financial planning jobs are on the increase according to major recruiters, and so this is a great time for us to relaunch the FPA Jobs Board. The Jobs Board advertises jobs aimed solely at the financial planning profession, so you don't need to wade through lots of irrelevant roles. For those of you looking to recruit new staff, we offer discounted advertising rates to members. Please visit the new Jobs Board at http://jobs.fpa.asn.au or via our homepage.
With a Federal election looming, possibly towards the end of 2010, we are working with Government, ASIC and Treasury on the Parliamentary Joint Committee (PJC) Inquiry recommendations, which we supported overall as a package of sensible and practical reforms. Another round of consultation will still occur once the Government responds to the PJC report, and we will of course need to see some integration with the Cooper Review.
The Henry Tax Review has been tabled with the Government and we await the Government's response. This is possibly the most significant of all reviews underway because it will supposedly reshape the tax and retirement systems over the medium and longer term.
From an FPA perspective, we have also been able to take stock of our own membership and have developed a much deeper insight into our members and the way financial planning businesses operate. You might be interested to know that:
· The FPA now represents 450 Australian Financial Services Licensees who employ 21,000 people working in 6,000 small financial planning businesses.
· There are about 14,400 financial planners in this group, and the balance are support staff.
· 25 per cent of these financial planners have between nine and 20 years' experience in giving financial advice, 24 per cent have either five to nine years' experience, or less than two years' experience.
· More than 75 per cent of our principal members actively survey clients to monitor satisfaction levels, and only one in five financial planners will receive a complaint. Most of these will be resolved by the licensee.
· FPA members were substantially underrepresented in ASIC prosecutions, in relation to the size of our market coverage.
· One-third of clients seek advice on investment; one-third on superannuation and one-third on self-managed super funds, life insurance, and estate planning.
With such a sizeable representation of the financial planning community, the FPA is well-placed to take the lead on the professional, policy, and consumer agenda. We have active and engaged committees, and we have a raft of professional designation programs and events on the horizon to whet your appetite.
No doubt we will face challenges, but with your support and participation we will navigate our way through the year with a clear focus and calm resolve. Keep reading our fortnightly editions of eNews for up to date analyses and views, and keep your feedback coming through Bloch's Blog, Chapter events, or via email. Wishing you all a prosperous and satisfying 2010.
Jo-Anne Bloch
Chief Executive Officer