Four candidates for YFYS expansion – and why we’re not convinced
None of the potential expansion areas for the Your Future Your Super performance test – including managed accounts or retirement income products – are warranted writes The Conexus Institute’s David Bell and Geoff Warren. Nor would any expansion of the test have caught schemes like Shield and First Guardian.
Morgan Stanley moves client subset off legacy platform to Netwealth
Morgan Stanley Wealth Management will move a subset of its clients off its legacy platform onto Netwealth, further aiding the platform provider’s expansion into the stockbroking and private wealth market. The deal comes as the fast-growing Netwealth plans to double in size over the next four years, despite regulatory issues caused by First Guardian in the past 12 months.
AIOFP board exodus follows white label platform deal
Four directors of the Association of Independently Owned Financial Professionals have departed the board, citing concerns over the launch of a new platform in the wake of the Shield and First Guardian disaster. The white label arrangement with DASH comes in response to InterPrac advisers being blacklisted and is the controversial industry body’s second foray into platform product provision.
Requiring trustees and MISs to join CSLR is the only solution
Levying financial advisers for the Compensation Scheme of Last Resort was always an arbitrary decision, and unsustainable. Given the rapidly increasing cost pressures, the government should include platform trustees and managed investment schemes in future special levies.
Govt says trust changes will only impact minority of small business
The government says tax changes to discretionary trusts won’t impact 90 per cent of small businesses as it consults on reforms proposed in the May federal budget that will include rollover relief for those wanting to change structures. Treasurer Jim Chalmers says changes to the taxation of trust income will help fund income tax cuts for workers.
Funds fiddle while members’ retirement burns
Members cannot be out of sight, out of mind for funds after they’ve retired. The CoreData/Conexus Financial Best Possible Retirement research shows that members who move into retirement without the benefit of information, advice and guidance feel lost, and in dire need of ongoing fund support services.
What a brief encounter with Elon Musk taught me about the limits of capitalism
A brief encounter with Elon Musk in 2013 showed that he would not flinch at rolling the dice, writes Conexus Financial founder and managing director Colin Tate AM. But SpaceX’s mega-IPO demonstrates that citizens, regulators, capital allocators and advisers need to decide whether they are comfortable with who is holding those dice.
APRA targets executive pay packets of under-fire Diversa Trustees
APRA has commenced an investigation into Diversa Trustees’ executive remuneration decision-making and processes, but says the move is unrelated to any enforcement action stemming from to the collapse of the First Guardian Master Fund.
Advice firms need 25pc annual fee rises to be sustainable: Peloton
Advice firms will need a 25 per cent increase in ongoing fees to sustain desirable shareholder returns, according to data and analysis from Peloton Partners. The findings come as the latest Adviser Ratings Landscape Report shows the average advice practice profit margin sits at 23.5 per cent.
Beware ‘unconscious concentration’: Rethinking diversification
Diversification is one of the most familiar ideas in investing. But Orbis Investments’ Eric Marais writes that looking around at the concentration risk that now defines large parts of today’s market, it is also one of the ideas most in need of a rethink.
Researcher Forum
Advice Policy Summit
This event is open to CEOs and senior leaders of financial planning licensees, dealer groups and boutique advice firms, along with C-suite executives in superannuation funds with oversight of advice, education and guidance.
One philosophy but many models to solve the retirement advice challenge
Advice firms running multiple advisers, and licensees overseeing hundreds or thousands of them, are finding that the hardest part of retirement advice is not the technical work but agreeing on a consistent way to do it. Tying together the disparate elements of a solid retirement plan can present real challenges in the absence of a clear philosophy.
The biggest game in town: Inside AustralianSuper’s retirement income strategy
Since Jacki Ellis joined the nation’s biggest profit-to-member super fund as head of retirement just over one year ago, she’s been assessing and building the fund’s capabilities with the aim of delivering a fully personalised experience to all members by 2035. But that’s not to say there won’t be benefits for members who retire before that.
The ‘powerhouse’ women driving AZ NGA’s next growth phase
AZ NGA has grown into a $700 million behemoth under the leadership of co-founder and CEO Paul Barrett, who has become the public face of the group. But as the advice equity aggregator moves into its next phase of growth, it’s the counsel and experience of four key women that has become critical to driving the business forward.
Regulation