What behavioural finance can tell us about life insurance advice and commissions
On October 9, the Australian Securities and Investments Commission (ASIC) released a damning review of the insurance advice provided by some financial advisers. The common theme was that the client was worse off, while the adviser pocketed a large benefit by way of an up-front commission. Financial advice tended to be much better in circumstances
November 10, 2014
Roskow plans to launch a new, lighter-touch financial advice venture
Financial planning business Roskow Independent Advisory is planning a spinoff advice venture targeting lower-complexity clients. The idea of a sister business grew out of a recognition the existing firm was not providing maximum value to all clients, says Neil Salkow, director, Roskow Independent Advisory. The as-yet-unnamed venture will follow the same Roskow principles, but offer
November 07, 2014
US financial planner hopes Australia forges a different path to professionalism
From SixtyFive, the bar on level 65 of 30 Rockefeller Plaza, you can see quite a lot of New York City. From this vantage point near the top of one of the city’s iconic art deco buildings, at night and with the appropriate cocktail in hand (a Manhattan – what else?) the scale of the
November 07, 2014
Upfront commissions: the life industry’s scapegoat
Outlawing upfront commissions won’t see more consumers take out cover or change the behaviour of advisers who habitually provide inappropriate advice. The solution lies in better educated advisers and consumers plus an image makeover for the industry, writes Scott Moses. Advisers have been led to believe that they add the most value for clients upfront.
November 07, 2014
Finding the financial planning graduates your practice needs
Demand for financial planning talent is traditionally skewed towards experienced candidates, but the rising bar of education standards means graduates are in high demand. “How do we get people coming in with a base level education, and an interest in the right reasons for being in the industry, without just expecting someone to come in
November 05, 2014
The biggest risk for retirees is when planners mistake risk for uncertainty
As the focus of retirees shifts ever-further towards objectives-based outcomes, those entrusted with achieving those objectives will have to rethink a traditional approach to managing money involving risk and return trade-offs. Speaking at the Fiduciary Investors Symposium (FIS) at Harvard University last week, Abdallah Nauphal, chief executive and chief investment officer of Insight Investment, a
November 05, 2014
Japan provides a compelling reason why deflation must be avoided
If European Central Bank (ECB) president Mario Draghi needed confirmation of why Europe should do all it can to avoid deflation, Japan has provided it. Digging yourself out of a downward spiral of stagnation and falling prices is difficult – and expensive. The co-ordinated response to the stalling of Abenomics is radical stuff. Shifting the
November 05, 2014
The financial adviser register is no game-changer, says Minter Ellison partner
The government’s enhanced adviser register will not have a profound effect on financial planners or consumers, according to Richard Batten, partner, Minter Ellison. He spoke with Professional Planner just days after the Government’s last red tape “Repeal Day” of 2014, which ended on 29 October. “This would seem to have all the hallmarks, no doubt
November 03, 2014
When choosing an AFS licensee is too difficult, partner up instead
A desire to be unhindered by conflicts and sales targets led to a partnered Australian Financial Services (AFS) licensing approach at MultiForte Financial Services. The Sydney-based business has a head office in the central business district and a satellite location in the northern beaches suburb of Manly. Under co-directors Kate McCallum and Tony Clark, MultiForte is
November 03, 2014
What are clients actually receiving for the fees they’re paying?
Are your clients being served? Ray Henderson reflects on the Business Health business diagnostics and client survey work undertaken throughout 2014. We’re extremely fortunate to have many Australian practices use our various tools and diagnostics to help them run their practices more profitably. We are grateful of their support and hope that they are all
November 03, 2014
SPAA warns members ahead of a quality review program update
The Self Managed Super Professionals Association of Australia (SPAA) has warned members to act only within their business boundaries and ensure they hold appropriate licenses for all activities. “Make sure you stick to what your core business is, whether that’s self managed fund administration, financial planning or the accounting practice. “And if that’s what you’re
October 31, 2014
Town and country provide contrasting experiences for financial planners
There’s nowhere to hide when working as a financial planner in a regional centre versus a capital city, says the director of Newcastle-based practice JSA Financial Planning. Andrew Shakespeare refers to the relative anonymity of being just one business among many that can be a feature for some working in big cities. This is something
October 31, 2014
