Key Insights from the FAAA Roadshow 2025

The Growth Evolution: Key Insights from the FAAA Roadshow 2025

The financial advice profession is undergoing a period of rapid transformation, with regulatory changes, technological advancements, and professional development initiatives shaping its future. The Financial Advice Association Australia (FAAA) Roadshow 2025, themed The Growth Evolution, provided a platform for industry professionals to explore these developments and discuss strategies for sustainable growth.

A key theme throughout the event was the long-term vision of positioning financial advisers as self-regulated professionals, reducing unnecessary regulatory burdens while maintaining best practices and client protection. The sessions explored critical topics such as tax deductibility for financial advice, AI governance, offshore data protection, and business growth through collaboration. These discussions highlight the profession’s evolving landscape and the increasing role of advocacy in shaping its future.

1. Tax Deductibility of Financial Advice: A Continuing Debate

One of the more contentious topics at the roadshow was the push to make financial advice tax deductible. Industry leaders argued that this reform would enhance accessibility by encouraging more Australians to seek professional financial guidance. While the proposal remains under consideration, it is evident that FAAA and its members are committed to advocating for this change, recognising its potential to improve financial literacy and long-term financial security for clients.

2. Strengthening Political Engagement Through Advice Ambassadors

The launch of the Advice Ambassadors initiative marked a significant step towards strengthening engagement between financial advisers and federal politicians. By fostering direct connections with policymakers, this program aims to ensure that the interests of financial advisers are represented in key legislative discussions. With an election on the horizon, this initiative will be instrumental in shaping regulatory policies that impact the profession.

3. Nurturing Future Talent: The Advice Academy

The roadshow also introduced the Advice Academy, a collaboration between FAAA and Kaplan designed to support the next generation of financial advisers. With demand for financial advice outpacing supply, the academy will provide education, networking opportunities, scholarships, and internships to encourage new entrants into the industry. The program represents a critical investment in the profession’s sustainability and the development of future talent.

4. Digital ID and AML Reforms: Enhancing Efficiency

A major discussion at the event revolved around the adoption of digital identity verification and Anti-Money Laundering (AML) reforms. The FAAA supports the implementation of digital IDs as a means of reducing repetitive client identification processes, improving efficiency, and enhancing security. These reforms are expected to streamline compliance obligations while maintaining robust protections for clients.

5. AI in Financial Advice: Regulation and Ethical Considerations

The role of artificial intelligence (AI) in financial planning generated considerable discussion, particularly in relation to record-keeping and file notes. Nearly half of the attendees indicated they already use AI for meeting documentation. While AI presents opportunities for greater efficiency, concerns were raised about accuracy, compliance, and ethical considerations. The FAAA provided clear guidance for AI integration in financial planning, including:

• Verifying the accuracy of AI-generated transcripts.
• Updating company privacy policies to reflect AI usage.
• Obtaining client consent before recording meetings using AI.
• Developing a structured internal AI policy.

These recommendations underscore the importance of maintaining transparency and regulatory compliance in AI adoption.

6. Offshore Data Protection: Ensuring Compliance and Client Trust

As financial firms increasingly turn to offshore staffing solutions, data protection remains a top priority. The FAAA stressed that offshore employees must adhere to Australian privacy laws, and businesses must disclose offshoring arrangements in their privacy policies. Ensuring compliance in this area will be critical to maintaining client trust and upholding industry standards.

7. Business Growth Through Collaborative Law

Collaborative law presents a growing opportunity for financial planners, particularly in areas such as divorce, estate planning, and business succession. By working alongside legal professionals, financial advisers can support clients in making informed financial decisions during emotionally charged situations. This approach not only enhances client outcomes but also broadens the scope of financial advice in complex financial and legal scenarios.

8. Addressing Financial Abuse: The Adviser’s Role

Financial abuse emerged as a particularly important topic, with advisers encouraged to take proactive steps in identifying and preventing exploitation. The FAAA outlined several best practices to support vulnerable clients, including:

• Conducting annual reviews of Power of Attorney (POA) documents to ensure suitability.
• Establishing and enforcing a Vulnerable Client Policy.
• Increasing awareness and education on identifying financial abuse.

By taking a proactive approach, financial advisers can play a crucial role in protecting clients from financial harm.

A Roadmap for the Future

The Growth Evolution theme at the FAAA Roadshow 2025 highlighted the financial advice profession’s ongoing transformation and the critical role of advocacy in shaping its future. From regulatory changes to advancements in AI and digital identity verification, it is clear that financial planning is becoming more dynamic and interconnected.

With initiatives such as the Advice Academy and Advice Ambassadors, the FAAA is laying the groundwork for a more sustainable and self-regulated industry. The profession’s evolution will require adaptability, continued engagement with policymakers, and a commitment to professional excellence. As these developments unfold, financial advisers and paraplanners alike have an opportunity to contribute to a more efficient, ethical, and client-focused industry.