The Royal Commission into the Wealth Management Industry

The royal commission has certainly highlighted systemic issues with our industry. Unfortunately the findings, although overwhelming, they weren’t surprising. The key is where to from now.
The wealth management industry is heavily regulated. Recent reforms were enforced on the industry to address some of the systemic issues including dealing with conflicted remuneration and prescribed regulations on how advisers need to act in the best interest of their clients. Furthermore, prescribed regulations related to education, professional standards and ethical code of conduct.
Notwithstanding the fact there are financial advisers who have been acting in the best of their clients long before the FOFA reforms were introduced, we can’t deny the fact the reforms introduced were the  result of bad behavior amongst players in the industry.
In summary, the outcomes of the royal commission and the drivers of the recent reforms are not conducive to moving towards a profession and self regulation. In my humble opinion for us to get back on track we need to genuinely focus on earning and maintaining public trust as this would be the key indicator. However, there is a price the industry must accept, including removing the legacies that have been weighing the industry down,  particularly when they drive conflicted remuneration regardless  of how remote.  Failing this, the industry can only expect more of the same.