Government moves swiftly on FoFA recommendations
The Minister for Finance, Senator Mathias Cormann, has reacted promptly to a Senate committee’s recommendations on streamlining the Future of Financial Advice (FoFA) legislative reforms. The changes it has outlined will be enacted by regulation and where legally possible will come into effect on July 1 this year. Cormann has announced that the government will
June 20, 2014
Gen Y wants more transparency from financial planners
Generation Y values expertise and transparency over price-based comparisons when it comes to selecting a financial adviser, according to a study conducted by online portal ProAdviser. ProAdviser is an online tool that helps connect potential clients with financial planners, having launched around four months ago. According to the survey of more than 120 consumers, mostly
June 20, 2014
FEATURE: NAB’s Hagger on fish and chips, Madonna, and closing the retirement gap
In 2012 an album called “Hope” topped the Australian classical music charts. It sold so well that it briefly also appeared on the Aria Top 10 album chart, outsold Madonna, and featured a track performed by Olivia Newton-John. In 2014 there’s another album out, called “Moon Under Water” – named for a George Orwell essay
June 20, 2014
Should opt-in be abolished because it’s anticompetitive?
While we were waiting for the government’s formal response to a Senate inquiry into proposed amendments to FoFA, the Minister for Finance, Mathias Cormann, was out and about talking up the amendments. In an interview earlier this week with radio broadcaster Alan Jones, Cormann raised an interesting question: Should the original opt-in provision of the
June 20, 2014
FoFA amendments welcomed, condemned in turn by differing industry stakeholders
The Senate Economics Committee handed down its report into the Future of Financial Advice (FoFA) reforms on Monday night, prompting support and dissension from leading industry groups and the government opposition respectively. Speaking from the cons perspective, Bernie Ripoll, Shadow Minister for Financial Services and Superannuation, says that in general terms he was “very pleased
June 18, 2014
In the FoFA debate, a recommendation is often just a recommendation
The Senate Economics Legislation Committee tabling its report into the Corporations Amendment (Streamlining of Future of Financial Advice) Bill 2014 is a bit like Christmas Eve: it means Christmas Day is close, which is exciting; you can see the presents under the tree; but you still don’t know yet what you’re really getting. The report
June 18, 2014
From Rockingham to Brookvale: a financial planner’s odyssey
Last month James Walker-Powell chalked up 25 years in the business. This is an edited version of a speech he gave at an event to mark the occasion, reflecting on how he came to enter the financial planning industry in the first place Many people who come into my office look at the certificates on
June 18, 2014
Demand from financial planners sparks development of new adviser portal
Unexpected demand from financial planners to help SMSF clients find income-producing investments has led boutique fund manager Balmain Private to start work on an adviser portal for its online mortgage investment platform. Balmain has to date originated, credit reviewed and funded in advance about $30 million of mortgages, predominantly over over commercial properties, that SMSF trustees access
June 16, 2014
Grandfathering of commissions not a long-term solution for financial planning dealer groups
Financial planning practices that aren’t already doing so need to migrate away from commissions and platform rebates to help maintain sustainable cash flows, warns Tony McDonald, director of T&C Consulting Services. This is particularly true for practice owners considering selling their business. While McDonald believes smaller, more nimble non-institutionally aligned dealer groups are addressing this
June 16, 2014
Are we there yet? The journey towards true professionalism
As Mao’s famous quote reminds us, a journey of a thousand miles begins with a single step. And with hundreds of steps now behind it, Australia’s financial planning community is well down the path to becoming a profession. In fact, most of us are already there. Concurrently, Australian consumers are on a converging path of increasing
June 16, 2014
ASIC cuts highlight the need for better financial planning self-regulation
In making the transition towards professionalism, Australia’s financial planning sector needs to embrace more effective self-regulation, according to Richard Batten, partner and financial services legal specialist at Minter Ellison. He refers to the management of “bad apples” within the industry, especially in the context of this year’s budget, that has seen the Australian Securities and
June 13, 2014
