SMSF establishment needs justification beyond ‘generic’ client statements: AFCA
The nation’s financial services dispute resolution service has made clear that justifying the establishment of an SMSF requires more than just vague indications from clients that they want more control of their super.
Diversa applies for $239m First Guardian government bailout
Diversa Trustees has applied to the government for a bailout of First Guardian investors worth approximately $239 million, arguing the losses were a result of fraud and remediation will be in the best financial interest to members.
New AMP CEO says lead generators a ‘real driver of consumer harm’
In one of his first interviews as chief executive of AMP, Blair Vernon tells Professional Planner that lead generators and introducers conducting business with rival platforms to AMP’s North present a “real risk” to consumers beyond the victims of Shield and First Guardian. The comments come as the Albanese government consults on measures to crack down on super-switching lead generators, including a possible new licensing regime.
The hundreds of millions of bucks that stop with the Sequoia board
The failures of oversight, compliance and management that placed InterPrac Financial Planning squarely at the centre of one of the biggest advice scandals of the past decade can be traced back to the performance of the board and management of its parent company, Sequoia Financial Group, writes Simon Hoyle.
Govt urged to act quickly on adviser education standard reforms
A three-part framework for new financial adviser education standards has received widespread support from industry and professional bodies across the spectrum, but the government has been told to act urgently to implement reforms to reverse a precipitous decline in adviser numbers since 2019 and to make advice more affordable and accessible.
Shield, First Guardian reforms must not become a covert operation to restrict competition
There is broad consensus in industry and Canberra that the collapses of the Shield and First Guardian master funds – and failures that led to them – demand a regulatory response. But getting that response wrong could create an uneven playing field in the industry and some counterproductive consumer outcomes.
AustralianSuper’s call for leverage is bold but unnecessary
AustralianSuper’s chief liquidity officer Chandu Bhindi has publicly proposed the idea of allowing some super funds to directly use leverage, enabling them to better manage liquidity requirements in crisis situations rather than being forced to sell assets at stressed prices. The Conexus Institute writes that while the idea has some merits, overall it is not necessary and could increase system risk.
Overwhelming majority of shareholders vote for Insignia sale
Shareholders have given the nod to CC Capital’s $3.3 billion acquisition of ASX-listed Insignia Financial, bringing the firm closer to de-listing pending court approval later this week.
FAAA looks overseas to address chronic shortage of advisers
A Financial Advice Association Australia submission to Jobs and Skills Australia recommending “financial adviser” and “paraplanner” be added to the 2026 Occupation Shortage List would open up pathways to recruiting from overseas to fill a significant and growing shortfall in the number of advisers needed to meet the demand for advice from an aging population.
Managed account growth drags on GDG results: Morningstar
Morningstar says that Generation Development Group’s growth in managed accounts has failed to meet investor expectations and was the cause of a drop in GDG’s share price following the release of March quarter results. The analyst note comes despite Morningstar running competing businesses with GDG, including managed accounts, although it made clear the equity analysis retains a clear separation from other business lines.
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Time to bring law to SMSF ‘wild west’: Hartley
More regulation is needed to address consumer harm arising from SMSFs and the Financial Accountability Regime should apply even to platforms that outsource their super trustee in order to close governance gaps, according to Insignia Financial CEO Scott Hartley.
Lessons from the middle: Leadership, resilience and the courage of conviction
The principles of high-performance leadership – whether in business or sport – remain remarkably consistent and include the ability to maintain clarity, integrity, and conviction under immense pressure. Former Australian test cricketer Usman Khawaja told the Top1000funds.com Fiduciary Investors Symposium that the only time you really lose is when you stop trying.
Reflecting on nearly half a century in financial advice
After an extensive 47-year career, Paul Harding-Davis says that while every decade has seen a significant step change that has felt like an “Armageddon” it has instead only seen the standard of the industry improve. Reflecting on his long career to Professional Planner, he is still evangelical about recruiting young people to advice.
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