The Association of Financial Advisers (AFA) says members must adapt to remain successful amid rising costs and potential falling revenues.

CEO Brad Fox says the concept of adaptive change emerged at the association’s recent Leaders Forum – Business Summit.

“There was unanimous agreement the paradigms for financial advice have changed due to a combination of political, legislative, technological, societal and economic forces,” he said.

“The pace of change is accelerating and it is placing significant challenges on previously successful businesses and advisers.”

Mr Fox says practices must evolve or risk failure.

“A lot of advice practices are feeling like their costs are going up while there is downward pressure on revenue. Advice businesses are therefore exploring ways to adapt.”

Change will be a cornerstone of the AFA’s roadshows this month and its National Adviser Conference in Canberra in October.

“Advisers, practice owners and licensees are increasingly asking themselves and each other what they need to change to do well three, five and 10 years from now,” Mr Fox said.

“The research into adaptive change reveals it is only through working together that the future solutions are found.”

More details about the roadshows and conference are available here.