We knew people would leave the advice industry: Hume

The regulatory transition of the financial advice industry has been cumbersome for many people but senator Jane Hume believes the worst of it is over.

In an interview with Stockspot, Hume welcomed the proper professionalism of the financial advice industry which had diverged from its sales oriented origins.

"It's been an uncomfortable shift for a lot of people," said Hume.

Consequently, a steep fall in registered adviser numbers has transpired but Hume was steadfast that it was fair that advisers be able to demonstrate the value they could offer to clients. She took no exception to the Best Interests Duty, stringent educational standards, onerous compliance or digital disruption that have reformed the industry.

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Hume was also unperturbed by the finfluencers that have begun to fill the hole left by the exodus of advisers.

Hume said: "I love the fact young people are engaging more with their personal finances."

She called it a great service, even though there is as she described an obvious difference between finfluencers and financial advice.

Hume said she is glad that ASIC had cracked down on finfluencer advice particularly in instances where commissions were accepted, or products and services were promoted. At the same time, she acknowledged people have been offering free "financial advice" or for forever and a day.

"I think most Australians are sensible enough to distinguish between financial advice and a trip from a stranger," Hume said.

Despite the turbulence in the advice industry, Hume was optimistic about the affordability, accessibility, and quality of financial advice available to Australians.

Moreover, she added: "Not everybody needs a full financial plan on day one, sometimes they just need bite-sized pieces of advice and certainly digital advice can fill that void."

"It's not about eating into traditional advisers' client base; it's about making sure clients of traditional advice have access to cheaper advice."