Many people working in financial services often forget that financial advisers work within communities and regions and not in isolation or in an economic bubble.

If local communities and economies don’t thrive then more than likely financial advisory businesses will also struggle to grow.

In Britain this doesn’t bode well for an industry swimming against a tide of challenges.

Legislative change, anaemic economic growth, distrusting consumers and an unprecedented level of state debt (requiring major Government cost cutting and/or tax rises to get under control), all indicate a tough road ahead for the financial planning sector.

Britain and some of its European neighbours, not to mention its big cousin on the other side of the Atlantic, has struggled to bounce back from the global downturn as quickly as Australia.

In fact, for the UK, some predict more job losses once the dust settles on this week’s General Election as the Government, comfortable with a four year mandate, settles down to the task of pushing through the required changes for Britain to avoid following in the same footsteps as Greece.

It has been estimated that taxes would have to rise by the equivalent of 6p on the basic income tax rate of 20p to get the budget deficit down to a respectable level by 2020.

Of course, this won’t happen, as any Prime Minister – regardless of charisma levels – would be lynched. Yet the calculation reveals how ill Britain’s finances have become.

So given the nation and its citizens should be bracing themselves for a Blitzkrieg of fiscal tightening, it means the financial advice profession is set to face its most difficult period, arguably to date.

Existing models are likely to be tested and in some cases broken, while on a positive note, new opportunities will arise for individuals and businesses to move the industry forward.

Many will leave the sector, while the changed landscape has the potential to entice new players into the market.

The big issue is where consumers will see value and whether they feel the services on offer meet their needs.

In addition one thing that is not going away is the so-called demographic time-bomb of an ageing population, which in turn is living longer.

Governments and businesses the world over are reviewing their pension systems in a desperate bid to not fiscally cripple future generations or shareholders, respectively.

With more onus on the individual to take care of their future liabilities and financial requirements, the financial services industry in Britain, and elsewhere, must step up to the plate and deliver the products and services that will meet these needs.

Looking ahead there is scope for a variety of business models – direct, online, quasi-advice, full fee-based advice etc – in a diverse country as Britain given its large and generally urban-based population of 62 million people.

The challenge for financial advisers is how can they develop the right model while working at a local level with limited resources to spare?