DBFO Tranche 2 arrives, swapping SOAs for ‘CARs’
The Albanese government has released draft law on Tranche 2 of Delivering Better Financial Outcomes, unveiling the replacement of Statements of Advice with the new "Client Advice Record" required to be kept on file but not issued to clients unless requested. The more controversial changes to the Best Interests Duty and introduction of a “new class of adviser” were left out, as foreshadowed by Professional Planner.
March 21, 2025
If the safe harbour steps remain, so does Australia’s advice gap
Stephen Jones’ pre-Budget release of the second tranche of the Delivering Better Financial Outcomes laws will be welcomed by advisers still penning lengthy SOAs and super funds seeking clarity on nudges. But until the old chestnut of reforming the Best Interests Duty is cracked, accessible forms of digital and scaled advice will remain a pipedream.
March 21, 2025
Research house commences ‘sector watch’ on troubled private credit market
SQM Research has placed the private credit sector on “watch” in response to the heightened scrutiny of the asset class. Among an exhaustive list of concerns cited by the researcher, including transparency and conflicts of interest, SQM believes the growth of offerings comes as more investors qualify as wholesale.
March 20, 2025
How Liz Truss’ brief tenure as UK PM inspired peculiar AFCA case
The unexpectedly short 49-day tenure of former British Prime Minister Liz Truss led to a chain reaction for one client’s portfolio that ultimately led to the Australian Financial Complaints Authority finding they were incorrectly labelled as a wholesale investor.
March 20, 2025
The ghosts of super’s original admin sin have come back to haunt it
Back in 2015, five big superannuation funds thought their administration nightmare was finally over. But it was only just beginning – and they still might not have reached the end.
March 19, 2025
Licensees will require ‘a complete restructure’: CoreData
A “reset of the advice industry” will require licensees to restructure how they operate and provide a better risk/return profile to be sustainable businesses, according to CoreData. The researcher’s consulting director Grahame Evans, who once led GPS Wealth, believes the bigger players exiting the industry means smaller licensees will have to drive progress in the profession.
March 18, 2025
Deja vu as ASIC liquidates fund with ties to Shield
ASIC has moved to wind up the First Guardian Master Fund, after concerns from the regulator investors were misled, including conflicts of interest with its director David Anderson. The same advice firms caught up in the Shield investigation have also been implicated with the First Guardian fund, and the regulator has frozen assets of another lead generation service with ties to both funds.
March 18, 2025
The merit of alleviating key-person risk via process documentation
The importance of comprehensive process documentation is overlooked, with a mere 10 per cent of advice practices having their processes clearly documented. With most small businesses having a ‘key person’ holding the information in their head, the risk of that information disappearing is significant.
March 17, 2025
Getting in early helps boost women’s superannuation savings
As women face the risk of having less in retirement than men, advisers share how they help their female clients improve their super balances. This can vary from obscure government incentives to spousal co-contributions.
March 17, 2025
Research touts managed account efficiency benefits as regulatory scrutiny mounts
Advisers who use managed accounts are saving three days a week on average, according to research from Investment Trends and State Street Global Advisors. The findings come as the regulator says the sector “remains an area of interest” of its regulatory scrutiny, but proponents say the main catalysts for uptake are cheaper fees and better performance.
March 17, 2025
