It was a big month for some of the major software providers in the industry. CFS hosted an exclusive sneak peak for its new Edge platform, while Iress announced a ‘connectivity network’ program to improve third-party integration on Xplan.
But of all the product producers, few were bigger than Vanguard which finally launched its much awaited superannuation fund.
The launch of the fund will add large scale competition to the sector which has spent the last few years consolidating.
In commission
Quality of Advice review lead Michelle Levy announced her recommendations as part of the Life Insurance Framework review and surprised many in the industry by following financial minister Stephen Jones’ lead and embracing commissions.
Like with Levy’s ‘good advice’ proposals, there is ambiguity that raises concerns over how conflicts will be managed.
However, the recommendations received a strong rebuke from consumer groups while many in the industry defended the need for consumers to be able to choose to pay for life insurance via commissions.
Later in the month, Levy spoke at the FPA National Congress and said apart from a few minor changes she would be recommending her ‘good advice’ proposal to Jones on 16 December.
“In the proposals paper – which feels like forever now – it was about reasonably benefitting the client,” Levy said.
“Now I am thinking much more around ‘fit for purpose’. What I like about that is that it adjusts to whoever it is you are advising and who is giving that advice.”
Off the chart
XY Adviser announced it is rebranding to Ensombl. Co-founder Clayton Daniel conceded it was far from the perfect name and had to deal with the realities of international trademarking.
Daniel also discussed the growth of the business and how it will position itself as more than an online community – it aims to offer more continuing professional development resources and wants to help the industry recruit.
Daniel took a page out of AMP Horizon’s book and sees accountants and nurses as the best recruiting pools.
“With accountants you teach them to be good with people; with nurses you teach them to be good with numbers,” Daniel said.
“We think we can reach into those professions and pluck people out and pull them across into financial advice.”
