With 2024 in full swing, optimism fills the air, hinting at potential industry rejuvenation and transformation. Let’s delve into what the rest of the year may hold for us.

Industry outlook

While new advisers are entering the industry, there remains a shortage in numbers. However, recent exam relaxations and pragmatic approaches suggest positive developments.  Anticipate further governmental involvement in promised reforms, though the looming possibility of an election may alter the landscape.

Selecting quality advisors

Despite fluctuations in licensee numbers, financial planners exhibit a preference for continuity, remaining committed to their current affiliations and business growth.  Climb Wealth continues to attract interest from financial planners seeking affiliation. However, the decision to onboard new members remains a meticulous process, prioritising adherence to ethical standards and client protection.  This ensures that as a group, you and your clients are protected.  We appreciate the high standards our current advisors maintain to enable this.

Addressing audit findings

Following the 2023 compliance audits, file note discrepancies emerge as a primary concern. Comprehensive file notes serve as a crucial component of documentation, ensuring clarity and accountability in client interactions. Remember, if it’s not in writing, it never happened.  Anyone should be able to pick up the file and fully understand the discussion points and recommended outcomes.

Financial Register and ASIC Levy

Efforts are underway to finalize the Financial Register inclusion for all our advisers and address the upcoming ASIC Levy obligations promptly.  We’ll keep you informed every step of the way.

Tax deductibility of financial advice

Recent media attention highlights potential expansions in tax deductibility, particularly regarding upfront fees. Currently if ongoing fees for financial advice are paid from cashflow, this is considered a tax deduction (TD 95/60).  This is being broadened to consider the component of upfront fees and their tax deductibility.This development opens avenues for financial planners to enhance service offerings and address client affordability concerns.

Embracing the unknown

As we await the unfolding of 2024, let’s embrace the possibilities it brings.  Your success remains our priority, and we’re here to support you every step of the way. Don’t hesitate to reach out, and here’s to another year of fruitful collaboration.

Geoff Byrnes

Geoff ensures that our financial advisers follow their compliance duties and legislation so that our clients’ best interests are always at the heart of what we do.  Read his full bio here.