Industry Updates

AMPing up MySuper

AMP will launch two MySuper products next year, with the financial services giant becoming the fourth institution to gain MySuper approval from the Australian Prudential Regulation Authority. AMP joins the Commonwealth Bank of Australia’s wealth arm, Colonial First State, insurer Suncorp and Westpac’s BT Financial Group plus around 55 industry, government and corporate super funds,

August 22, 2013

Hybrids soar, ASIC swoops

The fast adoption of hybrid securities by self-managed superannuation funds (SMSFs) has attracted the Australian Securities and Investments Commission’s ire, with the regulator promising to crack down on the mis-selling of these investments. There were approximately 75,000 investors in hybrid securities last year, two thirds of which were SMSFs, according to research by Investment Trends.

August 20, 2013

AMP: a tale of two Craigs

In 2002, at the age of 38, Craig Dunn implemented a cost-cutting program that slashed $60 million from the cost base of AMP Limited in just 12 months, while at the same time steering the company through the introduction of the Financial Services Reform Act. In 2006, he was forced to overhaul the way AMP’s

August 16, 2013

AMP: more planners, more cash

AMP added 44 new financial planners in the year to June 30, boosting its total number of advisers to 3680, despite a surge in the number of advisers who retired and left the group. Speaking at AMP’s 2013 half-year results on Thursday, the group’s soon-to-be chief executive Craig Meller said planner growth had been curbed

August 15, 2013

Modernisation, regulation dent CBA profits

A surge in compliance-related expenses and unfavourable risk insurance claims weighed down the performance of the Commonwealth Bank of Australia’s wealth management business. Chief executive Ian Narev said the bank had spent a “very significant amount of money” in the last 12 months implementing compliance and regulatory change programs related to the federal government’s Future

August 15, 2013

Online advice challenges business models

National Australia Bank Wealth’s new free, virtually instant advice tool has flamed fears in financial planning circles that rigid traditional advice models will rapidly become obsolete. The threat and opportunities presented by emerging scalable advice models was hotly debated at the Financial Services Council conference last week, following the launch of NAB Wealth’s bespoke, online

August 05, 2013

Technology to end holistic and expensive advice

The emergence of new, technology-powered advice models will drive old-school financial planners out of business, according to an expert panel at the Financial Services Council conference in Brisbane. The panel, which consisted of Bill Danaher, chief executive Industry Fund Services; Rod Bristow, principal of dealer group, Infocus; and Paul Barrett, ANZ general manager advice and

August 01, 2013

Planners face reality check on SMSF business

Financial planners consistently overestimate the amount of revenue they will derive from self-managed superannuation fund clients, but those who foster relationships with accounting firms are far better placed to meet targets. While the Vanguard and Investment Trends Self-Managed Super Fund Planner Report covered a range of investor and adviser issues, a recurring theme was the

July 30, 2013

Who are the Best Practice finalists?

The quest to identify Australia’s best financial planning practice has produced a shortlist of finalists that demonstrate how regulatory change and economic uncertainty represent no hurdle to running a great business. The Best Practice Competition 2013, run by Professional Planner and consulting firm Business Health, and supported by MLC Advice Partnerships, attracted more than 200

July 30, 2013

Buzz in recruitment but legacy books face sting

Licensees are reporting vastly different recruitment experiences in the first month of the Future of Financial Advice reforms with some recording high levels of query from advisers looking to switch while others claim it is now harder than ever to move. Last week, Futuro managing director Dennis Bashford said the dealer group was experiencing a

July 29, 2013

Specialist planners benefit from SMSF black hole

Financial planners aligned to accounting firms are winning the battle for self-managed super fund business, but new research has found the SMSF sector has significant unmet advice needs, potentially creating opportunity for specialists. Vanguard and researcher Investment Trends this week released the results of a Self-Managed Super Fund Planner Report based on research conducted in

July 25, 2013

Social media: great in theory, missing in practice

The case for financial planners using social media to both promote their businesses and stay in touch with clients has been overstated, according to one expert who argues that such hype is best left to product pushers. While the use of social media has grown exponentially as many businesses dedicate a vast amount of time

July 23, 2013