FEATURE The true value of letting independents be independent
The option of being self-licensed need not be daunting if financial planners can find the right partner to work with. And if anecdotal evidence on the number of planners intending to acquire their own Australian financial services licence (AFSL) plays out for real, there will be a significant number looking for such a partner. Soula
June 13, 2014
New rules could lead to disability income insurance issues for SMSFs
Unless we have significant legislative reform to the superannuation rules on temporary incapacity benefits, it will become increasingly rare for disability income insurance (DII) to be arranged through clients’ super funds. In recent years there have been a series of tax and super law developments that have weighed against holding DII inside of super. And arguably
June 13, 2014
Financial planner knowledge shortfall could hinder Australia’s $500 billion-plus SMSF sector
Financial planners often lack the essential knowledge of self-managed superannuation funds (SMSFs) required to adequately advise the growing sector, says the head of technical standards at the SMSF Professionals’ Association of Australia (SPAA). “We see that, from self managed funds, there’s not enough education about how SMSFs operate,” says Graeme Colley, SPAA’s director of technical
June 11, 2014
Helping clients to negotiate the many risks in retirement
Retirement is a major milestone in people’s lives. It is increasingly becoming a major focus for financial planners as the “grey tsunami” results in 1000 people a week turning age 65. Clients tend to be more concerned about generating a secure and growing income in retirement and are less interested in outperforming financial indices. The
June 11, 2014
What’s consistent with the banks is inconsistent with professionalism
In the heat of the debate around consumer protections in financial advice, Industry Super Australia (ISA) has sometimes been characterised as being pitted against financial planners. On the contrary, ISA and the funds we represent have always promoted the importance of quality financial advice. Our members need accessible, impartial and high-quality financial advice. For most
June 11, 2014
IN FOCUS: Getting a fix on bond funds
In late April, the giant US-based technology company Apple issued $US12 billion ($12.9 billion) of bonds. It was able to issue the securities at interest rates roughly comparable with the rates at which the US Treasury issues bonds. It was a clear signal by investors that they regard the creditworthiness of at least one major corporation very nearly as
June 10, 2014
Financial planners urged to check professional indemnity fine print
Financial planners have been advised to check they are covered by their licensee’s professional indemnity (PI) insurance, especially given the growing popularity of alternative investment strategies, managed investment schemes and gearing arrangements. “PI insurers generally are concerned about things like double-gearing, managed discretionary accounts (MDA) arrangements, limited powers of attorney and authority and direct shares
June 10, 2014
As the government pulls the watchdog’s teeth, co-regulation starts at home
The financial planning industry can no longer rely as heavily as it has on the Australian Securities and Investments Commission (ASIC) to find and chuck out the industry’s bad apples. Over the coming four years the budget of the corporate watchdog will be cut by about $120 million. ASIC chairman Greg Medcraft told Senate Estimates
June 10, 2014
The best way to generate strong referrals is also the simplest
More than 90 per cent of financial planners’ clients would be happy to refer friends and family to their planner, but a recent survey by corporate coaching and leadership consultancy iCommunicate indicates that 77 per cent of these people have never even been asked for a referral. Speaking at a workshop run last week in
June 10, 2014
Great financial planning finally has a value: 23 per cent more in retirement
Financial planners are familiar with alpha and beta as drivers of long-term investment portfolio returns; but now there’s a third letter to add to the lexicon – gamma – and according to Morningstar, it’s the value created that can be directly attributed to sound financial planning. Portfolios optimised using five techniques identified by David Blanchett,
June 06, 2014
Born again: The advice industry is set for a radical transformation
The number of unsettled advisers is swelling and they’re about to start agitating for change. Ray Miles explores their options. There may only be a handful of sizable independently-owned dealer groups left due to consolidation, however, there are hundreds of well-run small advice businesses. Some hold their own Australian Financial Services Licence. Others are licensed
June 06, 2014
