Industry Updates

Budget amendments could spell the end to SMSF property spruikers

SMSF property spruikers will see their business model shaken up as the government moves to end the ability for a trustee to borrow money for residential housing. The Greens secured an amendment to the government’s tax changes proposed in the May federal budget that would end the use of limited recourse borrowing arrangements for residential property.

FAAA questions profession’s capacity to onboard constant super changes

The Financial Advice Association Australia has questioned the impact of continued tinkering with superannuation laws from the government, arguing Treasury needs a clear roadmap for change implementation.

Trustee-for-hire model in trouble as EQT calls time on super and Diversa turns on Praemium

The ASX-listed parent company of Equity Trustees Superannuation Limited has confirmed it will divest its super trustee-for-hire business in the aftermath of the $1 billion Shield and First Guardian collapse. Diversa Trustees, which is being sued for onboarding First Guardian, is seeking compensation from Praemium should it be ordered by the court to remediate investors.

Push for better regulatory enforcement not new laws: JAWG

The Joint Associations Working Group has warned that adding more regulation would have little impact in protecting consumers, arguing the Shield and First Guardian collapse saw existing laws breached. Led by the FAAA, FSC and Licensee Leadership Forum, the working group said effective oversight and enforcement by ASIC and APRA remained critical.

Mega themes, mega companies: The trillion-dollar thesis

The world's largest companies aren't just dominant because of their size - they're also the primary vehicles for the structural themes reshaping economies, from artificial intelligence to cyber security and defence.

How to avoid the ‘triangle of sadness’ in proposed capital gains tax changes

The proposed capital gains tax changes are not a reason in themselves to change asset allocation, but the new rules strengthen the case for holding growth assets in tax-efficient structures, such as superannuation, investment bonds, and exchange-traded funds held outside super, writes Betashares' Cameron Gleeson.

Advice firms need 25pc annual fee rises to be sustainable: Peloton

Advice firms will need a 25 per cent increase in ongoing fees to sustain desirable shareholder returns, according to data and analysis from Peloton Partners. The findings come as the latest Adviser Ratings Landscape Report shows the average advice practice profit margin sits at 23.5 per cent.

Super funds must adhere to governance standards they demand of others

Director tenure limits are embedded in governance codes across every major capital market. As Australian superannuation funds become retirement institutions, they should be held to the same standards that they expect of the companies they invest in, Jeremy Cooper writes.

Accountants’ exemption a supply-side relief proposal, with baggage

As financial adviser numbers continue to languish, a proposal to resurrect an old idea has emerged. But the politics that led to its demise in the first place might be too much to overcome, even if it could form part of the advice supply-side solution.

Licensees team up on AI governance due diligence

The Licensee Leadership Forum has been working on an AI governance due diligence program to develop best practice guidelines to lift industry standards, as some high-performing networks have leveraged AI to lift adviser output to serving over 200 clients.

PictureWealth becomes mega-licensee with Capstone takeover

PictureWealth continues to evolve from its fintech heritage with the acquisition of Capstone Financial Planning, turning it into a licensee owner with scale. CEO Allan Maitland tells Professional Planner the group still has the desire for further M&A.

Only advice and product together can deliver retirement confidence

Neither advice nor product innovation alone will deliver the retirement income solutions the Retirement Income Covenant envisages. But delivered together at scale, they can give members the confidence and assurance they need to retire well, the Professional Planner Licensee Summit has heard.

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