Emerging business models illustrate the paradox of FoFA reforms
Love them or loathe them, the FoFA reforms certainly present a paradox. On the one hand, they strive to put client’s interests first and have brought important changes to our industry as a result. These include the introduction of best interest duties and client engagement measures such as FDS and opt-in. They have also resulted
September 18, 2015
The life insurance clawback battle has begun
A three-year clawback was proposed in the Life Insurance Framework (LIF) developed by the Association of Financial Advisers (AFA), the Financial Planning Association (FPA) and the Financial Services Council (FSC). Since Assistant Treasurer Josh Frydenberg endorsed the LIF, the AFA has been campaigning for greater clarity around what constitutes a legitimate replacement policy and what is
September 18, 2015
Both large and small boutique hedge funds win gongs at the Australian Hedge Funds Awards 2015
The Ellerston Australian Market Neutral Fund has won the 2015 Australian Hedge Fund of the Year award. Ellerston’s outstanding performance was recognised last night when Hedge Funds Rock & the Australian Hedge Fund Awards announced the winners of the 2015 Australian Hedge Fund Awards. There were eight hedge fund winners across different categories, as well
September 18, 2015
An online attempt to make financial advice attractive to the masses
A desire to make financial planning accessible to the more than 1.8 million Australian households without money to invest inspired the creation of online advice start-up Life Sherpa. This is a financial coaching and planning service, comprising general, scaled and holistic advice delivered at various price points and different levels of client complexity. Investment management
September 17, 2015
The impact of robo-advice will be widespread – here’s what you need to do
A growing number of businesses are starting to focus on robo-advisers, who provide a simple process to typically match personal goals to a low cost portfolio. Whether you think they are good or bad, there’s probably little protection from their impact. In fact, wherever you sit in the financial service supply chain, a robo will
September 17, 2015
Income volatility, not price movements, the key to better retirement portfolios
Thinking about asset classes in terms of income volatility instead of price volatility creates a better starting point for constructing retirement income portfolios, according to analysis by fund manager Legg Mason Global Asset Management. Individuals in accumulation phase tend to focus on volatility in prices; for individuals in retirement or decumulation phase the more important
September 17, 2015
Instreet: Markets await Fed response this week
Investors and business might have got the Prime Minister they wanted in Malcolm Turnbull, but external factors dominated the market yesterday with uncertainty about the US Federal Reserve’s decision on interest rates helping push the S&P/ASX 200 index down 1.6% to 5,096.points. Instreet Investment Managing Director George Lucas says the market has only put a
September 16, 2015
A new approach to maximising retirement income – Legg Mason
Older Australians and their financial advisers need to reconsider the traditional building blocks of retirement portfolios to avoid people running out of money in retirement, according to global asset manager Legg Mason. Speaking today at Legg Mason’s 2015 Retirement Income Symposium, Reece Birtles, Chief Investment Officer for Legg Mason-owned asset manager Martin Currie Australia, said
September 16, 2015
ARRIA announces a working partnership with FE Australia to provide more data services to ARRIA members
ARRIA is pleased to announce that it has established a working partnership with FE Australia to bring to the financial advisory community tools and services that help advisers deliver outcomes-based solutions targeted at meeting their clients’ needs. ARRIA is an association focused on delivering tools and resources for Financial Advisers who want to build investment
September 16, 2015
US rate rise is ‘fraught with risk’ for investors in illiquid bond markets, says AB
While the prospect of an increase in US interest rates is good news from a fundamental point of view the rate rise, when it happens, could prove to be a challenging experience for many investors, global asset manager AllianceBernstein (AB) said today. “The rate rise will be evidence that the US recovery is becoming established,”
September 16, 2015
Risk advisers pin their hopes on a new PM and potential reshuffle
Some parts of the financial planning community are hoping the appointment of Prime Minister Malcolm Turnbull will mean a reprieve from the Life Insurance Framework (LIF). With former Prime Minister Tony Abbott deposed after a Liberal Party poll was held late on Monday night, the new Prime Minister was sworn in just after midday yesterday.
September 15, 2015
Government must re-examine clawback after insurers unfairly label advisers as “churners”
All professional financial planners have two clear responsibilities. First, to act in the public interest, as required by their profession; and second, to act in the best interests of clients, as required by the law. Any obligation to protect the interests of their employer/licensee and product manufacturers – even when those entities are one and the same
September 15, 2015
