Compensation scheme on life support
With no more sittings of Parliament left before the election the Compensation Scheme of Last Resort bill has lapsed. The major parties remain divided over whether Managed Investment Schemes should be included and the election will settle the dispute.
April 12, 2022
At capacity: Another major insurer exit further shrinks PI market
AIG will cease renewals in September, further restricting options available for advice businesses looking to fulfill their AFSL obligations. Financial services is a loss leader for PI underwriters, making the sector unappealing for new entrants.
April 11, 2022
Finfluencer crackdown end of ‘two tier’ regulatory approach: FPA
ASIC putting a tighter leash on finfluencers will create a level playing field and put them under the same oversight as planners according to the Financial Planning Association.
April 11, 2022
One-size-fits-all approach for HNWs ‘doomed to fail’: Research
High-net-worth investors greatly vary in sophistication and can’t be treated as a homogenous cohort, according to a report from HUB24.
April 08, 2022
Advice market is ‘cooked’: ALP’s Jones
The shadow financial services minister has been colourful in describing the negative state of the advice industry but is unapologetic for his party’s support of industry reform initiatives, including the Hayne Royal Commission.
April 07, 2022
Time’s up for pandemic SoA relief: ASIC
The regulator will not further extend relief measures allowing advisers to provide RoAs rather than SoAs to existing clients financially affected by the pandemic, and will reduce the 20 day window for "urgent advice" relief back to five.
April 07, 2022
‘Issue of choice’: ClearView states commissions case as election looms
The life insurance advice industry desperately needs to retain the right to charge via upfront fees or trailing commissions according to ClearView. With an election looming and the major parties divided on the issue, a commissions showdown is becoming likely.
April 06, 2022
HNW retirees shun funds over service issues, turn to SMSFs
High growth in SMSFs sets a challenge for APRA-regulated funds which must concentrate more on providing services rather than just products according to CoreData chief executive Andrew Inwood.
April 06, 2022
Australian regulatory regime ‘focused on finding solutions’: FPSB
ASIC’s consultation process has received international praise as the CEO of the Financial Planning Standards Board found its use of plain English and the role played by the professional bodies has created a stronger regulatory ecosystem for advice.
April 05, 2022
Macquarie Bank sued for failure to monitor third-party adviser
The corporate regulator has commenced proceedings against Macquarie Bank for lack of monitoring systems that allowed a third-party adviser to steal almost $3 million in client superannuation funds.
April 05, 2022
‘Everything is scrutinised’: M&A due diligence process triples
The due diligence process undertaken to sell a financial advice business has tripled over the last decade. FOFA and Hayne royal commission reforms have meant potential buyers need to inspect every inch of a business before committing to a purchase.
April 04, 2022
