PJC proposals should create one set of professional standards to unite them all
The government’s consultation paper on lifting the professional, ethical and education standards in the financial services industry, issued today, notes that adopting the recommendations of the Parliamentary Joint Committee (PJC) report would “represent a substantial change to the current regulatory environment for financial advisers”. Further, the proposed PJC model would “apply equally to advisers working
March 25, 2015
New PIMCO head convenes task force to tackle retirement income solutions
Seven months into the job as an executive vice president of PIMCO and head of the $2 trillion fund manager’s operations in Australia and New Zealand, Adrian Stewart is putting together a task force to combine the firm’s own strengths with the clout of Allianz – PIMCO’s parent company, and the largest life insurance company
March 25, 2015
ADF Financial Services, Clearview heads at odds over financial advice remuneration
Two senior financial industry figures vigorously debated their opposing views on adviser remuneration during an Australian Securities and Investments Commission (ASIC) conference panel session yesterday. Robert M C Brown AM, chairman, ADF Financial Services Consumer Council, believes fee-for-service advice in life insurance is a viable model. “Could it be that the industry’s claim that many
March 25, 2015
The journey to successful financial planning begins with a specific, measurable step
The achievement of core financial and lifestyle goals is often a measure of a successful financial planning experience by clients. This may often be an ongoing journey, whereby needs, desires, values and tolerances change as the client’s relevant circumstances change. An adviser’s value proposition to a client is being there to navigate the client through
March 25, 2015
Upfront commissions are unfairly blamed for deficient risk advice, argues Clearview
High upfront life insurance commissions and instances of non-compliant financial advice have not been accurately correlated by ASIC or the FSI, according to the chief actuary of ClearView, Greg Martin. “No one’s made a link between cause and effect. Why does a high upfront commission mean someone can’t do a proper Statement of Advice (SoA)?,”
March 23, 2015
Early adoption of higher education standards builds a professional foundation
In the second part of a series on notable CFPs, Crowe Horwath associate adviser Amy Early discusses the role that higher educational standards play in the development of a professional career. After Amy Early finished university in 2007, where she studied economics and politics, she emerged with no specific professional direction in mind. Financial planning
March 23, 2015
Advice is under-appreciated in the financial services value chain
The fact the financial planning industry hasn’t been able to separate advice from financial products goes a long way to explaining the high cost, and therefore the low uptake, of planning. Advice is one part of the financial services value chain. It’s inextricably linked to a bunch of financial products including insurance, superannuation, investments and
March 23, 2015
Financial planners’ days as quasi-investment managers are numbered
Managed portfolio implementation within the BT Panorama platform is part of a broader shift in the scope and delivery of investment advice, according to a number of senior stakeholders in the sector. BT Financial Group announced the first stage of its Panorama roll out on Wednesday. Having invested $500 million in the new platform, the
March 20, 2015
Nominees sought for 2015 Certified Investment Management Analyst (CIMA) scholarship
Nominations for the 2015 BlackRock/PortfolioConstruction Forum Certified Investment Management Analyst (CIMA) scholarship close on March 30. The CIMA program is co-ordinated by the Investment Management Consultants Association (IMCA), and is widely recognised as a top qualification for individuals engaged in researching retail investment products and constructing portfolios for retail investors. The 2014 scholarship was won
March 20, 2015
Slow uptake of limited licensing could leave SMSFs out in the cold
There is a danger self managed super fund (SMSF) trustees will miss out on important financial advice if accountants continue to delay decisions their post-July 2016 licensing. “A lot of them haven’t yet made the decision on whether to go down the path of a license or a limited license,” says Peter Burgess, head of
March 18, 2015
Why you should review your SMSF clients’ existing borrowing arrangements
In recent months, there have been a number of developments relating to self-managed super fund (SMSF) limited recourse borrowing arrangements (LRBAs). For SMSF clients contemplating entering into any type of LRBA in the foreseeable future, the recommendations of the Financial System Inquiry panel (FSI) may influence current planning because, although not government policy, the recommendations may lead to new legal restrictions on LRBAs during the course
March 18, 2015
Can the music keep playing, or is the party over for Wall Street?
Over a five-year period, the US stock market has left its rivals trailing, as investors have celebrated recovery from the financial crisis. Zoom in to the period since the start of the year, however, and the S&P 500 is bringing up the rear. By contrast, Europe’s stock markets are climbing as the combination of cheap
March 18, 2015
