Financial planning’s Uber moment: ten reasons robo advice will change your world
The advent of robo advice is a seismic event in financial services and represents the most significant development in the delivery of financial advice in the past three decades, according to FinaMetrica director Paul Resnik. But far from being harbingers of doom, Resnik says he believes the impact of robos on existing financial planning participants
November 16, 2015
Low-cost financial advice solutions may be more important than ever
The economics of traditional financial advice models are becoming increasingly unsustainable, according to new analysis from consulting firm A.T. Kearney. The research combines in-house and Australian Bureau of Statistics data, and indicates only 20 per cent of households are wealthier now than a decade ago (figure 1). It also shows that only clients in this
November 16, 2015
Life insurers, not advisers, are to blame for high lapse rates: Centrepoint
High rates of life insurance policy lapses and “churning” are largely the fault of product manufacturers, not financial planners, says the head of a large non-aligned dealer group. “The definition of a lapse is still unclear. And the more we’ve looked at this over the last six to 12 months, the more you can see
November 12, 2015
Who’s cutting it, who’s not? Fund managers’ support of planners
The separation of product from advice is a critical tenet of professionalism in financial planning. A profession has to operate independently of product considerations, and independently of the influence of product providers. That much must be obvious to all by now. But influence is not the same thing as support, and product manufacturers have a
November 12, 2015
Full coverage: Professional Planner|Zenith Fund Awards 2015
Last month Magellan Asset Management ran a national adviser roadshow. Over the course of two weeks in eight cities, the manager attracted 2230 advisers – up from 1280 the year before. Whatever it is that advisers want from a fund manager, it appears Magellan has it. On October 9, Magellan was named Fund Manager of
November 11, 2015
Uncertainty remains after government responds to LIF
The government’s final changes to the Life Insurance Framework address some concerns cited by risk advisers, but leave a number of questions unanswered. Last Friday’s announcement from Assistant Treasurer Kelly O’Dwyer revised the responsibility period for a clawback of commissions from three years to two. It also confirmed other recommendations including broadened approved product lists
November 10, 2015
2015 Wheel Classic: 1100km and aiming for $100k
Riders in the 2015 Future2 Wheel Classic rolled out of Sydney on Tuesday morning on the first leg of an event that will ultimately see them arrive in Brisbane on November 18 on the opening evening of the Financial Planning Association (FPA) Professionals Congress. It’s a trek that will cover 1100km, from Sydney’s northern beaches,
November 10, 2015
Interview: Why boutique planning businesses punch above their weight
Few financial planners would deny they are in the midst of significant disruption across numerous fronts, including regulation and compliance, educational and professional standards, and technology. Developments in these areas are accompanied by heightened oversight from the federal government and the corporate regulator, the Australian Securities and Investments Commission (ASIC). This affects the whole sector,
November 10, 2015
Financial advisers are heading back to university
UniSuper has grown its financial advice team by almost one-third over the last year and this expansion should continue over the medium-term, according to Jack McCartney, the fund’s executive manager of advice and employer relationships. As part of this expansion, it is placing more advisers in on-campus locations at a number of universities around Australia.
November 06, 2015
The financial advice industry needs more Jedis, but fewer mind tricks
Why are there seemingly constant enquiries into the advice industry? Why do policy makers feel the need for constant regulatory change? Despite these efforts to improve, why do Australians still fail to plan adequately for retirement? And why do we often make poor investment decisions? The answer to all these questions is simple – we need
November 06, 2015
The need for enhanced post-retirement support
The ageing of the population has long been touted as one of the key economic and social drivers affecting Australia over the long term. This demographic shift will be one of the major forces shaping the demand and delivery of financial advice. Advice processes, strategies and education supporting the accumulation phase of superannuation have been
November 06, 2015
Don’t look now, but peace may have broken out in Risk-land
Despite a few hangers-on hoping for a last-minute reprieve, risk advisers have now largely accepted the inevitability of the Life Insurance Framework’s (LIF) reforms, according to Zurich. “There’s an overarching sentiment that, while you’ve got a small core of people who are potentially still not fully embracing of the need to change … the train
November 05, 2015
