Industry Updates

Stop phoenixing to make the CSLR sustainable

The biggest cost to the Compensation Scheme of Last Resort could be slashed by rewriting the rules followed by the Australian Financial Complaints Authority to prevent phoenixing of financial advice licensees.

Industry funds use Canadian PM visit to push investment diplomacy

If anyone needs a measure of the superannuation system’s growing clout in global geopolitics, look no further than Canadian Prime Minister Mark Carney’s decision to prioritise a meeting with industry super fund bosses in Sydney over meeting the Australian Prime Minister. It’s a reminder that in the face of an increasingly hostile relationship with the US, the so-called “middle power” nations are using pension capital to rewrite the rules.

Press quits Sequoia governance role as InterPrac shows little improvement

Former ASIC Commissioner Danielle Press has quit the governance committee for InterPrac-owner Sequoia Financial Group just seven months after she was recruited to help the licensee lift standards in the wake of its involvement in the $1 billion Shield and First Guardian collapse.

The digital retirement advice tool ‘doing the work of 250 advisers’

Aware Super has driven a significant increase in the number of retired members drawing down more than the minimum amount from their account-based pensions, in the pilot phase of a new digital advice platform. The $210 billion profit-to-member fund expects the impact to be replicated when it makes the platform available to all members.

Multi-faceted advice solutions needed to solve retirement

Industry leaders believe face-to-face interactions and tailored advice are fundamental to closing the retirement advice gap, and that any solution must both increase the supply of human advisers and support them with smart technology to be more productive.

Insolvent licensees implicated in Shield, First Guardian to get indefinite AFCA memberships

AFCA has given indefinite extensions of the insolvent licensees implicated in Shield and First Guardian, due to concerns that impacted investors haven’t had time to complain. The move comes as the FAAA continues to push for managed investment schemes to be included as part of the external dispute resolution process.

Opposition to CSLR ‘un-Australian’: Shield, First Guardian victim-turned-advocate

A leading advocate for Shield and First Guardian victims has told a room full of major super funds and their lobbyists that any opposition to the expansion of the Compensation Scheme of Last Resort was not in the Australian spirit.

InterPrac-owner backtracks from ending cross-guarantee after ASIC pressure

Sequoia Financial Group, the owner of troubled InterPrac Financial Planning, has backtracked on plans to end its cross-guarantee between its three subsidiary licensees after pressure from ASIC.

Advice reform urged to protect Australians from scammers and fraudsters

Four major super, insurance and advice CEOs have called for advancing advice reforms, arguing it is critical for the industry to deliver appropriate advice and guidance at scale and adding capacity into the system, to prevent Australians from falling into the clutches of scammers and fraudsters.

Listed licensees see financial tailwinds despite industry disruption

The remaining ASX-listed licensees continue to be in strong financial health as demonstrated by their earnings this reporting season, despite industry disruption including stalled advice reforms and the aftermath of the Shield and First Guardian collapse.

Industry fund lobby group ramps up attacks on super switching

Super Members Council has called for action to stop an “alarming” rise of superannuation switching and “extra” financial advice fees. But while the industry fund lobby group has called for an uplift to consumer protections, the warning comes as their members face heavy competition from the platform market.

Leaders urge punishment over new regulation in Shield, First Guardian aftermath

Leaders from across the financial advice ecosystem have used the Professional Planner Advice Policy Summit at the National Press Club in Canberra to call for stronger punishments for misconduct rather than adding to layers of regulation that were already ignored during the Shield and First Guardian collapse.

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