FoFA eating into platform product development
Financial product innovation in Australia has suffered in recent years as a result of platforms focusing primarily on regulatory-driven reform, says Kelly Power, BT Financial Group’s head of platform product. “I think the level of discretionary investment outside of regulatory change has dropped,” Power says. “Focusing on implementing regulations is a significant cost for us
April 03, 2014
How financial planners can help clients keep up with inflation
High inflation can erode wealth, but skilful advisers can help their clients maintain and grow the value of their portfolios, Peter Dorrian writes. Inflation came in at 2.7 per cent in the December 2013 quarter, according to the Australian Bureau of Statistics. That fell in line with the 10-year annual average of 2.73 per cent
April 03, 2014
Can everyone’s interests be satisfied in the FoFA amendments debate?
If you think it’s all quiet on the FoFA front at the moment, then picture a duck: serene and calm above the waterline, but paddling frantically beneath it. Behind the scenes over the past week or so there has been no shortage of action. Since the government announced a freeze on the Future of Financial
April 01, 2014
Infocus declares the future is bright as it reclaims its independence
Fresh from reclaiming its independence, the Queensland-based Infocus Wealth Management is gearing up for a bright future. But first, says managing director Rod Bristow, there’s the small matter of the FoFA amendments to deal with. InFocus Wealth Management was ready to comply with the full measure of the Future of Financial Advice (FoFA) reforms on
April 01, 2014
The trillion-dollar opportunity for Australian financial planners
An underinsurance gap of about $1.1 trillion for working Australians represents a significant opportunity for financial planners, according to a study commissioned by the Financial Services Council (FSC). Around three in four people believe life insurance is purely “death cover”, with financial planners facing an uphill battle to convince clients of the value of life insurance,
March 31, 2014
Financial planners seeking alternative approaches to bridging the risk gap
Following the GFC, more investors have been turning to strategic risk allocation as a way of combating the excessive potential risks associated with equities, as James Walker-Powell and Louis Seco explain. When you look at the movements between traditional growth assets – such as Australian shares, international shares and listed property – over the past
March 31, 2014
FoFA delay provides a welcome chance to clarify ‘advice’: AMP
The word “advice” as used in the term “general advice” is a problem, says Steve Helmich, executive director of financial planning at AMP. “You could argue that it should be called ‘general information’, because general advice is basically advice around product, not whether the product is right for the individual,” says Helmich, the head of
March 28, 2014
This road leads to financial planning, mortgage broking expansion
It’s coincidence, but Yellow Brick Road’s announcement of an ambitious non-bank financial services strategy could hardly have been made at a better time. As banks continue to cop flack for their apparent efforts to reintroduce conflicted remuneration to the financial planning scene, YBR has unveiled a strategy to substantially extend the reach of its financial
March 28, 2014
Financial planning industry ‘quietly confident’ FoFA delay will allow consensus
The financial planning community remains confident it can reach a timely, satisfactory outcome on the government’s FoFA reforms, despite the pause announced this week by Finance Minister and acting Assistant Treasurer Mathias Cormann. “We’ll be able to find a landing spot on this, as long as there are not embedded product commissions,” says Matthew Rowe,
March 26, 2014
ASIC still has teeth to police financial planners, despite FoFA delay
The Federal Government’s pausing of its Future of Financial Advice (FoFA) amendments is adding to regulatory uncertainty for financial planners and industry regulators, according to Richard Batten a partner in law firm Minter Ellison. “It’s a difficult position for everybody, and it does increase the risk and uncertainty for everyone,” Batten says. According to a
March 26, 2014
While FoFA is on pause, let’s remember what it’s all about
A newspaper editor once described reporters as being like lightbulbs: when one goes “phut!” you just screw in a new one; they all generate about the same amount of light and heat. Politicians are a bit the same. Take one out, put another one in – the heat and the light is pretty much unchanged.
March 26, 2014
Bill Bachrach’s guide to staying sane and surviving FoFA: First, turn off the TV
Sometimes it takes a fresh set of eyes to put long-running events into a manageable perspective. Bill Bachrach, the renowned consultant based in the US but a regular visitor to Australia, has some sage advice for financial planners who have suffered through the five-year Future of Financial Advice reform process. As Bill Bachrach sits down
March 23, 2014
