With the end of the year approaching, there will be conversations over Christmas drinks about the new government, unexpected legislative changes, mergers, business comebacks and failures and the like.
Some events have been more compelling than others.
To mark the end of 2013 and the beginning of 2014, Connect Financial Service Brokers has created a list of the local and international events which have had the greatest impact on the financial services industry in the last year.
They may also provide an insight into the future.
This year the industry witnessed:
• The introduction of the new FoFA legislation;
• A new Federal government in Canberra;
• The launch of a Financial Services Inquiry, being called the Murray Inquiry.
Other observations include:
• Financial planners are struggling to implement FoFA’s Financial Disclosure Statement obligations;
• Consumers continue to be conservative when it comes to investing;
• Canberra has a seemingly one-eyed focus on regulating the self-managed superannuation fund (SMSF) market
• Technology continues to underpin innovation and change in the industry;
• The sale and acquisition of advice businesses has come to a halt due to the new FoFA legislation and concerns around the grandfathering of revenue;
• The institutions have more orphan clients on their books than “real clients”;
• Assistant Treasurer Arthur Sinodinos AO has promised some amendments to FoFA before Christmas;
• ASIC is going to monitor vertical integration.
The Future
Without a doubt, the single greatest issue confronting not only the Australian economy – but the economies of most developed countries over the coming decade and beyond will be the exit of the Baby Boomers into retirement.
In Australia, this is going to place tremendous pressure on the current tax system, infrastructure and families. Retirement and wealth transfer has never been more complex or important.
The Financial Planning and Accounting professions will literally be on the frontline to address this issue – especially to help individuals and SMEs as they transfer approximately $1.6 trillion of savings, investments and value of their businesses to fund their retirement aspirations and lifestyles.
Financial Planners and accountants will need to work in close collaborative relationships to maximize their respective skills and expertise to assist consumers to successfully chart their retirement journeys.
The need for the Financial Planning and Accounting industries to act now has never been more important or imperative. One thing is almost certain, financial planners will move away from the institutions and into the self-licensed environment and in doing so, take back the ownership of clients from platforms by utilizing new and innovative investments instruments that will be developed to address this demand.
