Another arrow in the quiver: pinning clients down on saving
Many people believe their biggest financial asset is their home, followed by their superannuation. Others believe it’s their ability to earn an income. But here’s another thought: it may also be one’s ability to save. That would explain how some low-income couples are able to retire with considerable wealth while other high-income earners have almost
November 05, 2015
More than the job is worth: How at risk from machines is your occupation?
Recently I read a list of jobs that are most at risk of being replaced by machines. Financial planning wasn’t among the “most-at-risk” occupations, which makes me wonder about all of the hoo-ha currently surrounding robo-advice. Deloitte and researchers at Oxford University have estimated that about 35 per cent of all current jobs in the
November 05, 2015
Checkmate: How Westpac outflanked the opposition to win the compliance game
One of the biggest challenges facing Australia’s licensees is to make sure that the financial advisers whom they support run businesses which are completely and demonstrably compliant. Compliance, to be honest, is both very, very simple and very complicated at the same time. It’s simple because at its heart is a very simple ethos: make
November 03, 2015
Should risk advisers have their own AFS licensing requirements?
Risk advisers’ license requirements should be distinct from those of financial planners providing holistic advice, according to Brian Howard, owner of Gainsborough Financial Group. He believes the focus of the Life Insurance Framework (LIF) and Parliamentary Joint Committee on standardising educational requirements is unnecessary. “I’ve no idea why we are not all regularly having the
November 03, 2015
Are you a financial planning business dealmaker or dealtaker?
Most business owners who have established or built a successful business are justifiably proud of what they have achieved. However, it is surprising how few of them plan ahead for their successful exit from the business. I have an edict that the quantum of time spent on defining the strategy about succession determines whether you will
November 03, 2015
Paraplanning and compliance staff can name their price in the current marketplace
Demand for financial planning compliance staff has spiked again after reaching peak levels throughout the transition to Future of Financial Advice (FoFA) regulations, according to recruitment firm Robert Walters. “In 2013 and 2014, we saw a fairly significant amount of hiring in regulatory compliance functions, [as financial planning dealer groups] embedded a framework for FoFA.
November 01, 2015
Risk advisers continue to mobilise against the LIF
Large sections of the risk advice community appear to have accepted the Life Insurance Framework (LIF) as almost a fait accompli, including the Financial Planning Association (FPA) and the Association of Financial Advisers (AFA). The latter organisation held a series of roadshows throughout August and September to clarify the proposed changes and help its members
November 01, 2015
Mitigating the risk of Australian investors’ overexposure to banks and property
Australian retail investors are over-exposed to banks and other companies involved in financial services, according to Tim Mackay, principal, Quantum Financial Planning This belief has been reflected in the adjustments Mackay has made to his clients’ investment portfolios, which over the last 12 months have gradually increased their exposure to US equities. “The two key
November 01, 2015
NAB’s divestment of its retail risk business could be a sign of the times
Selling off 80 per cent of its life insurance business may provide NAB with an early-mover advantage over other banks, ahead of the Life Insurance Framework (LIF) and Financial System Inquiry (FSI) reforms. “This will be the first bank that does it. They had a real focus on insurance for a while, and that sort of
October 29, 2015
Claims surrounding CBA’s advice review program beg the question: how many strikes before you’re out?
How many chances should an organisation have to prove it’s sincere in its actions and in its approach to fixing a massive, devastating problem of its own making? If testimony at the most recent public hearing of the Senate Economics References Committee’s scrutiny of financial advice inquiry is to believed – and at this stage
October 29, 2015
‘Making a difference’ means different things to different people. What does it mean to you?
I enjoyed an interesting exercise when working recently with a small financial advice business. The principal of the business wanted to explore the beliefs and values of his team. I facilitated a conversation that started with a simple question for each person: “What’s important to you about working in this business?” It quickly became evident
October 29, 2015
2015 AMP University Challenge: we have a winner
The winner of the 2015 AMP University Challenge says he plans to explore opportunities to work as a financial planner overseas, including in the UK and Africa. Deakin University pulled off a quinella in the 2015 event, with its teams of financial planning students taking first and second places. Patrick Rowe picked up the winner’s
October 27, 2015
