Extraordinary circumstances and a drastic impact: how to avoid a perfect storm
As a result of the global financial crisis (GFC) and the collapse of numerous investment schemes, many financial advisers have been exposed to a perfect storm: extraordinary circumstances combining with a drastic impact on advisers and their clients. The following advice situation involves the confluence of three sets of circumstances producing substantial capital losses for
February 16, 2015
IN FOCUS: Doing it in style – a global approach to finding value in equities
Cast your mind back to 1980. Australia’s Alan Jones was crowned Formula 1 World Champion, and Bjorn Borg and Jimmy Connors slugged it out for the No 1 slot in the men’s world tennis rankings. Richmond won the VFL grand final, and in NSW the Bulldogs won the rugby league premiership. The Empire Strikes Back
February 15, 2015
Could no-commission life insurance kill off financial planning practices?
A fee-for-service remuneration approach to life insurance advice would create a considerable drop in earnings and overall business values for financial planners, according to the head of Centurion Market Makers. “I don’t think clients would remunerate advisers [through fees] as well for life insurance as commissions currently do…the fees wouldn’t match the current commissions,” says
February 13, 2015
FEATURE: Inside the turnaround that led AMP to the top of the heap
A well-known football commentator once said that watching a fairly solidly built AFL player trying to change direction was like watching “Pavarotti on a skateboard”. Trying to turn around the culture and the philosophy of a giant financial services organisation can be a bit like that, but the managing director of AMP Capital, Stephen Dunne,
February 13, 2015
Superannuation Awards deadline draws close
Awards designed to recognise excellence in the superannuation industry should not discriminate between funds based on size, says Conexus Financial Superannuation Awards selection committee member Michael Rice, chief executive of Rice Warner. Nominations for the Conexus Financial Superannuation Awards close on Monday February 16. A short list of entrants will be published in March and the
February 13, 2015
SPAA flags broader role in SMSF sector, starting with a name change – updated
The SMSF Professionals Association of Australia (SPAA) is positioning itself to take a clearer role in promoting the self-managed super fund (SMSF) sector, starting with a change of name to the SMSF Association (SA). The move is designed to remove potential confusion about what the association does, and to cement its presence in the SMSF
February 11, 2015
Trowbridge report ignores the real problem with life insurance advice
The Life Insurance and Advice Working Group (LIAWG) doesn’t appear to be effectively tackling the issue of conflicted remuneration that dogs life insurance advice, according to Industry Super Australia (ISA). Simply ignoring the merits of fee-for-service life insurance compromises the overall self-regulatory approach endorsed by the LIAWG, says Robbie Campo, deputy chief executive of Industry
February 11, 2015
How the AFA plans to adapt to the coming realm of professionalism
We live in a society and an economy where competition is regarded as a good thing, improving the quality of goods and the standard of services. In the world of professional associations, it’s really no different. Witness the accounting profession, which is well served by multiple associations. If the recommendations of a Parliamentary Joint Committee
February 11, 2015
Tax-saving strategies for account-based pension clients
There are some quirky aspects of the application of the minimum drawdown and related tax rules for account-based pensions which have caused uncertainty, particularly for clients aged from 55 to 59 inclusive. However, recent Australian Taxation Office (ATO) statements appear to remove all but a few of the remaining mysteries. This article examines some interesting tax
February 11, 2015
Life insurance submission models average cost of risk advice
The current model of life insurance advice is unsustainable, though fee-for-service is not the solution, says the head of financial services consulting firm Elixir Consulting. In her submission to the Life Insurance and Advice Working Group, Sue Viskovic – a former financial planner and a qualified CFP – addresses the challenge of adequately pricing risk
February 08, 2015
Client engagement stagnant despite upward trend in financial planning staff numbers
Financial planning practices have increased staff numbers in recent years, but this may not be increasing the number of client meetings, according to research conducted by Business Health and Rubik. The Future Ready VI survey found the average number of client facing appointments per adviser per week stands at just 6.3. “On average, each practice
February 08, 2015
Aussie economy shifts gears as structural changes take hold
This is an economy in transition. Far from a steady state. And there will be significant changes over the next few years, playing havoc with the outlook for different sectors and regions. In my previous article (in the October issue of Professional Planner) I outlined a “mud map” of current and prospective changes in Australia’s
February 08, 2015
