Letters to the editor: September – October 2018

Professional Planner


October 19, 2018

October 2018

PencilCouldn’t agree more (“FASEA, ASIC ‘ambivalent’ on investment oversight”, Professional Planner September 2018). A lot of the continuing education required now and in the future seems to be around ethics, which is fine, but what might be getting lost is the investment knowledge of advisers. ASIC has a role, but unfortunately it has spent a long time listening to the big end of town tell them what advising is about, and has not consulted with independent thinkers who actually have a licence to deal in securities.

Ian Bailey, Bailey Roberts Group in Wollongong, NSW

PencilForget about TMI (“Super sector’s bad case of TMI”, Professional Planner September 2018”). They have deliberately misled the royal commission. The main issue is NOT the fee refund, it is the fact that they levied fees for not doing anything. In any civilised society this is theft. Put another way, the funds are holding the money for the members. Taking fees, without justification, is theft. The words “trustee of the fund” should be a real giveaway.

George Lawrence, George Lawrence Chartered Accountant in Bowral, NSW

PencilIt’s sad to hear the vitriolic of the likes of Ray Miles (“Ray Miles fronts ASIC’s Macaulay on licensing”, PP Online August 9). There are always two ends to any spectrum. The world has changed and might I add that ASIC has significantly enhanced its process in approving AFS licenses. We just went through an AFSL approval and we had to demonstrate financial competence in presenting a balance sheet with forward projections and demonstrate all competencies to run an AFSL for the advice authorisations we are approved for. I dare say, this was not something that was prevalent in the past. There has been too much pressure applied on the regulator by the bigger end of town forcing the regulator to act as a gate keeper in my opinion and this more evidence of this stale type of thinking. Times have changed and it’s far more important that participants get on with it, than argue over the state of AFS Licensing. The irony is this is a result of the end of vertical integration and the small, the medium and the big all deserve the opportunity to practice and put their best foot forward, much to the chagrin, it would seem, of the established.

Robert Joseph, Freedom Wealth Advisers in North Sydney, NSW

PencilRegarding your article (“Death of the licensee as we know it, PP Online August 31) – approved product lists have long acted to preserve the status quo in product selection. In my time trying to establish the first managed accounts, it proved impossible to break into the product lists of large groups that were controlled by banks, undoubtedly because my efforts posed a threat to the bank owned unit trusts and expensive platforms. In the end, in recent years, the sheer appeal of managed accounts for clients has led to the growth of independent licensees who now use them in droves as HUB 24 alone is taking 10 per cent of new monies.

John Aldersley, Aldersley Capital in St Huberts Island, NSW

PencilMr Reddacliff’s idea to restructure the financial planning industry more along the lines of an accounting industry with a public practice certificate, is one of the most sensible proposals I have seen touted for a long time (Death of the licensee as we know it,” PP Online August 31). Advisers definitely need support, but this should be without product conflict, as any profession would expect. The only way the client’s best interest can be truly served if all the temptations are removed from the Planners’ line of sight. A focus on adviser capability and compliance has not improved the system, so let’s look at whether it is possible to conduct this business without the current structural arrangements that have developed with Licensees.

Kym Bailey, JBWere in Sydney NSW

PencilI disagree with your article (Death of the licensee as we know it,” PP Online August 31). Licensees are not dead, they are transforming. You reference an unnamed industry expert, who doesn’t want their name to get out? I’m a 30 year veteran in our industry, and am half way through my post grad studies through Griffith Uni. Not all us older guys are the reason the industry is where it is. If you truly represent the professional planner, then my question to you is what does that look like?

Mick Sykes, EZI Protect in Sydney NSW

PencilGood article David (“Everything’s going to be ok” Professional Planner September 2018), exactly what clients are looking for, the “I can realistically achieve my goals factor”.

Mark DiPietro, Shadforth Financial Group in Sale, Victoria

PencilRegarding the article (“Facebook gives me an edge”, PP Online August 17). In the Facebook Help Centre they state “It’s against the Facebook Community Standards to maintain more than one personal account.” Find this by searching “multiple accounts”. That’s important to know before following the strategy this adviser uses if you’re also intending to be ethical.

Matthew Hern, AMP Advice Subiaco in Subiaco, WA

PencilRegarding the article (“Opt-in rules put premium on insurance strategies”, PP Online August 13). This will be very restrictive on choice of superannuation going forward. The key issue is that most group insurance can’t be taken over by another fund so if the member has health issues they can’t get new insurance and may well have to stay with the fund they start with even if it isn’t their choice.

Damian Ebzery, Lifestyle & Investment Planning Solutions in Graceville, QLD

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TOPICS:   Letters to the editor,  opinion

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