Adapting for success in the financial services industry

Tadashi Kawamura, CFP, MBA

In countries around the world, advisors are facing more governmental regulations than ever — and finding ways to thrive. Embracing change is part of the business of being a financial advisor, said 19-year MDRT member Tadashi Kawamura, CFP, MBA, of Sapporo, Japan.

Getting a handle on regulations

In May 2016, the Insurance Business Act of Japan was revised, requiring advisors to retain the record of contact, confirm intention and keep a record of the interview as well as every part of the sales process. Kawamura described the change as a huge administrative burden. “I had to appoint a leader to supervise our agents and monitor administrative processes and install technology to minimize the burden on our staff,” she said. “It cost me a lot and it’s a pain, but it just had to be done.”

Thriving in the shift to independent agents

Along with increased regulations, the number of independent agencies in Japan is growing significantly. “Whether you are a captive agent or independent, unless you are able to embrace the changes, natural selection will determine the survivors,” said Kawamura, who manages an independent agency with seven agents and two assistants. They represent 13 life insurance and four property and casualty insurance companies and one security firm.

“With more and more regulations, this business will become more challenging. Those with high ethical standards, commitment and eagerness to serve will survive. I hope all of us in this industry will be reminded of this,” Kawamura said.

Written by Antoinette Tuscano, MDRT Content Specialist

More on how MDRT members are finding success amid change in the financial services industry

• New regulations drive change in Singapore (pdf)
• Surviving regulations changes in Australia (video)
• The U.S. DOL game-changer: What you need to know about the new fiduciary rule (pdf, audio) 
• Read more from Tadashi Kawamura about how economics in Japan creates challenges (pdf)