Financial planning is widely considered to be the less transactional version of financial advice, some see it as separate from transactions altogether.
FTAdviser In Focus has asked four financial planners for their views on what a modern practice means to them.
They are all part of a community of professionals called NextGen Planners, whose aim it is to "foster innovation in financial planning and build a better profession".
Here is what they think a modern financial planning business looks like and what needs to change to make this a reality.
Jon Doyle, founder and financial planner at Juniper Wealth Management
For Doyle, a modern financial planning business is a "vibrant, energetic and cohesive team" that uses technology to create effective and efficient planning experiences for its clients.
"While the client-adviser relationship will always be fundamental, a modern planning business will involve the whole team in delivery of the advice process and integrate technology throughout the process," he says.
But what's the big change? "We need more small and medium firms who are willing to invest in their people and develop the next generation of financial planners," he says. This is why, to celebrate its fourth birthday in October, his firm is preparing to take on its first associate trainee adviser.
Laura Pearson, director and chartered financial planner at Storeton Rose
For Pearson, a modern financial planning business is also one that utilises different technology. This allows it to engage with a range of clients and do so "in the format that the individual client prefers and which fits with the client's lifestyle."
But in order to see more such financial planning businesses, the funding and support for younger people to set up their own firms has to improve, she says.
"New start-up businesses in other industries receive grants, loans and support for setting up and for taking on new employees, yet financial planning businesses sit outside eligibility for this support in most scenarios," adds Pearson.
"This lack of investment and funding coupled with rising, variable and unpredictable costs of professional indemnity insurance make it difficult for talented people in the industry to set up their own independent firms and often [they] are forced to take employed jobs or set up firms in restricted environments where they are not able to be innovative or different."
She says those who do manage to get through the financial hurdles often find themselves without sufficient backing from the regulator and unable to get mentorship from experienced planners and business owners, which means they give up and go back to the restricted environments that do not allow them to lead change.
"Without supporting entrepreneurs both financially and non-financially to lead change in our industry, our industry will not change and move forward at the pace at which it needs to."
