Combined ministerial responsibilities puts spotlight on competing regulatory priorities
One of the more interesting moves in the new Turnbull government is the appointment of Kelly O’Dwyer as both Assistant Treasurer and Minister for Small Business. The Treasury and small business portfolios overlap in financial planning, and sometimes reveal competing priorities. A very significant number of financial planning practices are small businesses which might expect
September 21, 2015
No one knows everything: Why Eqeus called in the experts to help reach the ‘flirting with 40s’
Smart people know what they don’t know. It’s partly because of the very simple fact that no one can know everything; but it’s also a characteristic of people who are very good at what they do that they recognise their own limitations. After 30 years in the business, it might be tempting to think they there isn’t much
September 18, 2015
Emerging business models illustrate the paradox of FoFA reforms
Love them or loathe them, the FoFA reforms certainly present a paradox. On the one hand, they strive to put client’s interests first and have brought important changes to our industry as a result. These include the introduction of best interest duties and client engagement measures such as FDS and opt-in. They have also resulted
September 18, 2015
The life insurance clawback battle has begun
A three-year clawback was proposed in the Life Insurance Framework (LIF) developed by the Association of Financial Advisers (AFA), the Financial Planning Association (FPA) and the Financial Services Council (FSC). Since Assistant Treasurer Josh Frydenberg endorsed the LIF, the AFA has been campaigning for greater clarity around what constitutes a legitimate replacement policy and what is
September 18, 2015
An online attempt to make financial advice attractive to the masses
A desire to make financial planning accessible to the more than 1.8 million Australian households without money to invest inspired the creation of online advice start-up Life Sherpa. This is a financial coaching and planning service, comprising general, scaled and holistic advice delivered at various price points and different levels of client complexity. Investment management
September 17, 2015
The impact of robo-advice will be widespread – here’s what you need to do
A growing number of businesses are starting to focus on robo-advisers, who provide a simple process to typically match personal goals to a low cost portfolio. Whether you think they are good or bad, there’s probably little protection from their impact. In fact, wherever you sit in the financial service supply chain, a robo will
September 17, 2015
Income volatility, not price movements, the key to better retirement portfolios
Thinking about asset classes in terms of income volatility instead of price volatility creates a better starting point for constructing retirement income portfolios, according to analysis by fund manager Legg Mason Global Asset Management. Individuals in accumulation phase tend to focus on volatility in prices; for individuals in retirement or decumulation phase the more important
September 17, 2015
Risk advisers pin their hopes on a new PM and potential reshuffle
Some parts of the financial planning community are hoping the appointment of Prime Minister Malcolm Turnbull will mean a reprieve from the Life Insurance Framework (LIF). With former Prime Minister Tony Abbott deposed after a Liberal Party poll was held late on Monday night, the new Prime Minister was sworn in just after midday yesterday.
September 15, 2015
Government must re-examine clawback after insurers unfairly label advisers as “churners”
All professional financial planners have two clear responsibilities. First, to act in the public interest, as required by their profession; and second, to act in the best interests of clients, as required by the law. Any obligation to protect the interests of their employer/licensee and product manufacturers – even when those entities are one and the same
September 15, 2015
Why professional indemnity cover falls short in addressing consumer compensation
Professional indemnity (PI) cover is expensive and often inadequate in covering losses stemming from adviser misconduct, but in the absence of an industry-funded compensation scheme, it is the only hope many consumers have. PI insurance cover is often the biggest business overhead for small- to medium-sized financial planning businesses. The growing scarcity of PI providers,
September 12, 2015
An unlikely transition from the fraud squad to financial planner
Trading handcuffs and a police badge to head up a financial planning practice is an unorthodox entry to the industry – but that is the road taken by Brett Schatto, director, Pride Advice. “One night, I tried to break up a fight and arrest someone, and I was ‘coward punched’ by one of the offenders’
September 12, 2015
As time ticks away, getting the facts straight on licensing costs for accountants
Although the costs of licensing shouldn’t be the driving factor in your decision on licensing, it is important that you have unbiased and credible information to consider your options. When examining costs, it’s important to break it down between initial and ongoing costs. In both instances, I have provided some indicative costings for both self-licensing
September 12, 2015
