Industry Updates

DBFO revived as licensees thrown bone on ‘new class of adviser’

Licensees will be free to employ a new class of diploma-educated financial advisers and charge for their services in a last-ditch effort by Minister for Financial Services Stephen Jones to legislate advice reform before the election. However, the concessions come with the catch that advice provided by the new class will be limited to APRA-regulated products and subject to new civil penalties.

December 03, 2024

ASIC warns on identifying but not acting on underperformance

The regulator has made it clear that advisers and licensees need to maintain evidence persistent underperformance of superannuation choice products is being scrutinised, even if that doesn’t necessarily mean action needs to be taken. ASIC Commission Alan Kirkland told the Professional Planner Researcher Forum that this – along with overreliance on external research ratings – were the key issues found with practices that weren’t effectively monitoring investment underperformance.

December 03, 2024

‘Absolutely worrying’ standards across asset consultants: CoreData

Shrouded in mystery, asset consultants have become hugely influential over the allocation of advised capital, but CoreData research has found there is wide variation in practices. Even though it’s an opaque industry that has few barriers to entry, advisers are nonetheless quite happy with the services they’re receiving.

December 02, 2024

‘Democratic process’ to drive AMP Financial Planning rebrand

With the transaction of AMP’s advice arm to Entireti completed, AMP Advice and AMP Financial Planning will go with a complete rebrand early next year led by input from advisers. AMP will also bear a $36 million accounting loss for the transition, slightly more than the $30 million earmarked during the initial announcement.

December 02, 2024

‘Industrial scale’: Telemarketer-to-advice pipeline haunting ASIC

The regulator has linked telemarketers using high-pressure sales tactics to refer potential clients to advisers to rollover super funds into the troubled Shield Master Fund. It’s far from an isolated incident with the level of cold-calling sales tactics surprising ASIC Commissioner Alan Kirkland, who had built his career as a consumer advocate fighting against the worst of the worst of conflicted financial services models.

November 29, 2024

Swan fends off Bragg offensive over Cbus governance

Wayne Swan, former Labor treasurer turned chair of embattled profit-to-member fund Cbus, has staunchly defended the construction industry fund’s trustee governance and his own independence at a much-anticipated showdown with a parliamentary committee led by Coalition senator and super sector critic Andrew Bragg.

November 29, 2024

Take Trump at his word: Foreign Minister Wong

Australian investors and business should not be surprised if and when US president-elect Donald Trump enacts sweeping changes, Minister for Foreign Affairs Penny Wong has told a Conexus Financial Political Series event. Senator Wong also called for more investment in the Asia-Pacific and renewables.

November 29, 2024

First Sentier Investors makes senior commercial appointments

First Sentier Investors has appointed its global head of distribution and marketing, Harry Moore, to the newly created role of chief commercial officer. His current position will be filled by Lauren Prendiville, currently the regional managing director and head of distribution for APAC.

November 29, 2024

Practices should get same access to new class of advisers: FAAA

The Financial Advice Association says the new class of adviser should be a “level playing field” whereby advice practices are given the same legislative privileges as the super funds. The controversial second adviser tier was due to be introduced in legislation, but this is becoming unlikely to be voted on in Parliament with an election anticipated to be called early in the new year.

November 28, 2024

No need to wait for Canberra for advice process, documentation simplification

There are things advisers can do right now to reduce the size and complexity of Statements of Advice, improve advice and produce better outcomes for consumers. Some involve artificial intelligence; some require better thinking about processes. But none of them depend on actions out of Canberra, the FAAA Congress has heard.

November 28, 2024