The Growth Of The Financial Planning Industry
We all recognize the value of staying fit and safe, but we often abandon our routines due to a lack of discipline or knowledge about what to do next. It is where a coach’s job comes into play. They ensure that you work hard toward your goal. He keeps an eye on your active lifestyle and keeps track of your success. Similarly, a coach to your money is a ﬁnancial advisor.
A financial planner is someone who advises people about how, when, and where to invest. Any financial advisor in Sydney must have an Australian financial services (AFS) license. They guide everything from selecting a financial instrument to determining how much to spend, how often to check, and taking corrective action if necessary.
In the last decade, Australia’s financial planning sector has undergone drastic changes. This legislation has had a significant effect on financial planners and other groups such as accountants, regulators, the financial services sector, educators, and customers. Even though consumer protection was at its core, this law has allowed the industry and other organizations to recognize financial planning as a discipline. Although financial planning is generally considered a new profession, it has long been a part of everyday life.
The requirements to become a Financial Advisor in Sydney are governed by the Australian Securities and Investments Commission (ASIC).
DEVELOPMENT OF THE FINANCIAL PLANNING INDUSTRY
Ancient Origin: Financial planning has a long history dating back to ancient times. Even in 1500BC, some planning was necessary to ensure that resources like food, water, shelter, and clothes were available when they were needed.
Modernity: The advancement of modernity had a significant impact on the evolution of financial planning concepts.
Postmodernity: More recent trends in financial planning and how it is perceived in the post-modern world have been influenced by various social, cultural, political, economic, and institutional factors. These also paved the way for financial planning to be recognized as a legitimate career.
- Social Factors:The growing size and affluence of the middle class have been a significant factor in the growth of the financial planning industry. Other factors, such as higher life expectancy, a lower preferred retirement age, greater involvement in tertiary education, etc., have all influenced the market for financial planners to help people achieve their goals.
- Cultural Factors:The cultural landscape in Australia has undergone many changes. Computers and the internet, which provide easy access to information and have accelerated the speed of modern life, have also played a part. Financial companies have already successfully advertised a variety of financial products using this technology. Clients now needed independent financial advice as a result of this and a fierce domestic and foreign rivalry.
- Political Factors:In the regulatory climate, the Australian government has been a critical player in the growth of the financial planning industry. The most comprehensive reform for the financial planning industry has been legislative reform, which has helped to improve the industry’s reputation.
- Economic Factors:Economic measures such as the stock market index, interest rates, and inflationary pressures have all affected the industry’s growth over time in some way, and investors need assistance in choosing the most suitable financial product to achieve their objectives.
Improved contact between the accounting profession, the FPA, ASIC, and academia will be critical to the industry’s future growth. Theoretical advancement and academic study would allow for broader and richer research results by all stakeholders, contributing to financial planning’s acceptance as a profession and providing the impetus for social change. Financial planners are trusted as professionals serving the public interest.
Ester Adams is a farmer of words in the field of creativity. She is an experienced independent content writer with a demonstrated history of working in the writing and editing industry. She is a multi-niche content chef who loves cooking new things.