Royal Commission
Ongoing coverage and expert comment on the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry.
Royal Commission
Conflicts transcend incentives, ASIC to prove
ASIC's case against CBA and CFS Investments filed in the Federal Court on Tuesday is based on Kenneth Hayne's assessment of a fee arrangement he deemed to be conflicted even though it didn't directly incentivise recommendations.
Matthew SmithJune 23, 2020
Royal Commission
‘Money for jam days are over’: Ripoll
The ex-Labor MP lamented that despite efforts to kill commissions, “the opposite happened”. FoFA 2.0 is coming on the heels of the royal commission, he says, and an end to “rubbish”.
Tahn SharpeFebruary 25, 2019
Royal Commission
Managed account conflicts of interest divide industry
Hayne’s benign take on the separation of product and advice left the door open for conflicts of interest in managed accounts to continue. Not everyone is convinced that this is a problem.
Tahn SharpeFebruary 13, 2019
Royal Commission
‘Opex exemption’ loophole could remain open
Xplan subscription fees and sponsorship at conferences are among the common examples of opex payments product providers make to licensees, which may continue despite Hayne’s crackdown.
Matthew SmithFebruary 12, 2019
Royal Commission
Crackdown on grandfathering, fees to feed billions into super
Hayne’s recommendation to end pre-FoFA commissions and fees-for-no-service could generate $3.7 billion in remediation and send $1.1 billion a year flowing back into super balances.
Tahn SharpeFebruary 7, 2019
Royal Commission
Hayne throws doubt over AMP BoLRs
The Commissioner's view that client fees shouldn’t be seen as a tradable asset by advisers and wealth firms appears to undermine the BoLR-style of agreement.
Matthew SmithFebruary 6, 2019
Royal Commission
Hayne ignites adviser discipline bonfire
The commissioner’s proposed new disciplinary body could either make ASIC’s incoming code-monitoring bodies redundant or grant them much stronger powers over advisers.
Tahn SharpeFebruary 5, 2019
Royal Commission
Hayne orders about-face on OSAs
The commissioner has recommended that service contracts be delivered annually, and be much more focused on the value of the future service to be delivered.
Tahn SharpeFebruary 4, 2019
Royal Commission
‘This cannot continue’: Hayne dresses down advice
Institutions will continue to own advice businesses but their models will be tested as new expectations for disclosure and service agreements emerge in a heavily regulated environment.
Matthew SmithFebruary 4, 2019
Royal Commission
Super fund bosses to get BEAR treatment
The Commissioner said fund trustees and insurers should be accountable in the same way bank bosses are under the BEAR.
Alice UribeFebruary 4, 2019
Royal Commission
Hayne backs ‘one default account’ for new members
A single "default" super account should be mandated for Aussie workers according to Commissioner Kenneth Hayne.
Elizabeth FryFebruary 4, 2019
Royal Commission
Hayne forces trustees to lift game
Trustees will be forced to lift their game and their roles will be restricted to avoid conflict under Hayne's recommendations.
Elizabeth FryFebruary 4, 2019
Royal Commission
Client file ‘look back’ requests: no end in sight
Requests for client files prompted by ASIC programs and surveillance have become so onerous they’re strangling some advice businesses. The situation is likely to get worse this year, not better.
Matthew SmithFebruary 1, 2019
Royal Commission
Finance jobs down but there is a silver lining
A new report from Sunsuper has highlighted the effect of the royal commission on hiring in financial services but there could be hope for a rebound on the way.
Tahn SharpeJanuary 29, 2019
Royal Commission
Time for advisers to pay up for licensees
The evolution of licensees is happening, in part, because advisers are starting to think about certain services as an investment rather than a cost.
Matthew SmithJanuary 18, 2019
Royal Commission
Advice fee models will change
Ongoing fee arrangements, asset-based fees and incentive structures are set to be shaken up based on the findings of the Hayne royal commission.
Claire Wivell PlaterJanuary 16, 2019
Royal Commission
Banks aren’t leaving wealth due to lack of profitability
A PwC report reveals that institutionally owned wealth management businesses were still incredibly profitable in the lead-up to divestment in 2018.
Tahn SharpeJanuary 15, 2019
Royal Commission
Fund flows reflect royal commission backlash
Institutions that suffered the most reputational damage during the Hayne inquiry also suffered the biggest outflows from their platforms in the September quarter, data from Strategic Insight shows.
Matthew SmithJanuary 8, 2019
Royal Commission
2018: a defining year for advice
From regulation, to oversight, to education standards and beyond - 2018 will go down in history as a significant year in the lives of advisers, executives and business owners in the wealth management industry.
Matthew SmithDecember 20, 2018
Royal Commission
Advisers push industry funds to open up
Regulators and policymakers are investigating vertical integration and that probably has industry funds looking closely at their advice models.
Matthew SmithDecember 18, 2018
Royal Commission
Fear and self-doubt warping advice: Innova CIO
Advisers are losing confidence in their investment savvy and choosing cheap options at the expense of real value, Dan Miles says.
Tahn SharpeDecember 13, 2018
Royal Commission
‘You’ve got to get off the 1 per cent’: Stackpool
One of the industry’s most known figures has spoken out about what he calls outdated remuneration models. Charge clients for value, he says, and nothing more.
Tahn SharpeDecember 13, 2018
Royal Commission
Vigilant practices can buck the low-valuation trend
Creating robust risk management and continuous compliance cultures and systems is how advice practices can maintain and increase their value, even as other firms sell at a discount.
Matthew SmithDecember 12, 2018
Royal Commission
Advisers not pre-empting commissions ban
While the big banks have committed to getting rid of grandfathered commissions, a Professional Planner poll shows the broader market is reluctant to follow them. Tahn Sharpe writes.
Tahn SharpeDecember 11, 2018
Royal Commission
Investigating the real cost of admin: one fundie’s mission
By shedding light on hidden admin fees, one prominent fund manager is hoping to quicken cultural the change he believes is necessary for the industry to advance.
Matthew SmithDecember 6, 2018
Royal Commission
Boards need to be engaged on culture: Costello
“From the outside it looks as if you had strong management that controlled the corporation and the audit committee was not involved.” – Peter Costello on CBA’s failings.
Matthew SmithNovember 29, 2018
Royal Commission
Sanders on FASEA, Hayne and ‘the bones of capitalism’
The former chief of the standards body says he wanted to do more than just make the rules. Speaking at Deloitte, he expressed clear ideas about what the industry needs.
Tahn SharpeNovember 29, 2018
Royal Commission
Top 10 reasons real reform won’t happen
Politicians rarely maintain their appetite for significant change under ferocious lobbying. Here are the arguments most commonly used to give them pause, Robert M.C. Brown writes.
Robert MC BrownNovember 28, 2018
Royal Commission
Dealing with clients addicted to income
Max Newnham shares his tips for advising clients whose misconceptions have them clinging to residential property, listed equities or guaranteed bank deposits.
Max NewnhamNovember 27, 2018
Royal Commission
Bank execs admit to wealth experiment’s failure
NAB boss Andrew Thorburn followed his counterparts in admitting the big four’s foray into advice was both ill-conceived and poorly executed. Tahn Sharpe writes.
Tahn SharpeNovember 26, 2018
Royal Commission
Chris Bowen on reform: ‘I’ve been around the track’
Chris Bowen will listen but he's been 'around the track', as he puts it, enough times not to allow a lobby fuelled solely by self-interests to sway him.
Matthew SmithNovember 23, 2018
Royal Commission
Membership growth front of mind for new FPA chair Broome
The association has been focusing on building its younger membership base in recent years, at a time when many older advisers are looking for the exit.
Matthew SmithNovember 22, 2018
Royal Commission
Comyn probe reveals Hayne’s overseas focus
CBA’s Matt Comyn kicked off round seven of the Hayne royal commission hearings, which will feature leaders of the country's largest financial institutions.
Matthew SmithNovember 19, 2018
Royal Commission
Self-licensing trend spawns licensee support businesses
ClearView’s LaVista is the latest entry in dealer-to-dealer services, as institutions hedge their bets on future business models by partnering with firms wanting to go it alone.
Matthew SmithNovember 16, 2018
Royal Commission
Who really owns the client?
It’s one of the most vexed questions in wealth management but its something more advisers will need to consider. Ultimately, it may come down to ethics. Tahn Sharpe writes.
Tahn SharpeNovember 14, 2018
Royal Commission
US professor tells Hayne how to fix advice conflicts
The commissioner reached out to Sunita Sah for help on dealing with advice conflicts; she told him disclosure won’t work and neither will education or penalties.
Tahn SharpeNovember 13, 2018
Royal Commission
Time to stop the diversionary tactics
University degrees won't improve ethics, the suggestion that they will is just a diversion from the real problems the industry faces. Robert M.C. Brown writes.
Robert MC BrownNovember 12, 2018
Royal Commission
AMP not a lone voice backing commissions
The beleaguered wealth giant says a proposed hard cut to grandfathered commissions may hurt advice firms, advisers and clients – it’s not the only one.
Tahn SharpeNovember 6, 2018
Royal Commission
Take a hard line on ethics
If advisers want to repair the industry's public image, they will need to make an honest assessment of their own ethics in practice and take responsibility for raising the bar.
Simon HoyleNovember 5, 2018
Royal Commission
Wealth divestment a ‘strategic highlight’: Thorburn
The NAB chief called a $360 million remediation bill a “disappointing outcome” during the bank’s 2017-18 results announcement but celebrated the decision to offload the wealth arm.
Tahn SharpeNovember 1, 2018
Royal Commission
Dismantling the regulator is not out of the question
In all of Kenneth Hayne’s comments throughout the royal commission hearings and in the interim report, his views on the regulator were the most emphatic, Matthew Smith writes.
Matthew SmithOctober 30, 2018
Royal Commission
Commission bans, not FASEA, hit practice values
As the industry braces for a likely end to grandfathered commissions, the value of advice firms has dropped 15pc. Whether they bounce back or fall further depends on whom you ask.
Tahn SharpeOctober 29, 2018
Royal Commission
Advice in the wake of Hayne
Kenneth Hayne jolted institutions into high-profile moves to ban some conflicted remuneration but there are more issues to address and there will be more announcements to come.
Matthew SmithOctober 26, 2018
Royal Commission
Rice Warner says super overhaul will confuse members
Members making claims without realising they are no longer insured is one negative effect Rice Warner says would rise from planned reforms.
Ben HurleyOctober 18, 2018
Royal Commission
ANZ chief pulled up on ‘shareholder interests’ rhetoric
Shayne Elliott was largely uncontested on the stand in Canberra on Friday, until he was called out for using shareholder duty as a reason for past discretions.
Tahn SharpeOctober 12, 2018
Royal Commission
Licensees will be on the hook for best-interests lapses
The ability to prove rigorously that a product recommendation is in a client’s best interests does not currently sit within an adviser’s toolkit – that needs to change.
Matthew SmithOctober 3, 2018
Royal Commission
Banks will face crisp penalties not wet lettuce
The inquiry’s interim report suggests regulators will soon be tough enough to make big institutions think twice about wrongdoing, Andrew Main writes.
Andrew MainOctober 2, 2018
Royal Commission
Door open for a review into individual licensing
Adviser Rating's Mark Hoven says the royal commission’s interim report could lead to Kenneth Hayne recommending a review of the current licencing regime.
Tahn SharpeOctober 2, 2018
Royal Commission
FPA, AFA chastised in interim report
Commissioner Hayne singled out the FPA and the AFA for their lack of involvement in adviser conduct standards. "Much will depend on" their ability to improve, he wrote.
Tahn SharpeSeptember 28, 2018
Royal Commission
‘Siren song’ of finance sucked in advisers
The commissioner’s interim report suggests his recommendations will focus on empowering and educating individuals to do the right thing, not adding more legislation.
Matthew SmithSeptember 28, 2018
Royal Commission
Hayne calls out regulators’ lack of action
The commissioner took ASIC and APRA to task for rarely if ever going to court against entities it accused of wrongdoing and often imposing what he deemed inadequate penalties.
Alice UribeSeptember 28, 2018
Royal Commission
Let’s not have another FoFA
Commissioner Kenneth Hayne’s report shows he is keenly aware of the failures of FoFA and is keen to avoid letting history repeat itself.
Matthew SmithSeptember 28, 2018
Royal Commission
More trouble expected for banks in wealth
Analysts are tipping rising compensation costs and sliding share prices for the banks following the Hayne inquiry. The banks’ adviser numbers are already falling.
Alice UribeSeptember 28, 2018
Royal Commission
Advice firms planning reactions to royal commission, FASEA
A high proportion of advisers will change their business models within the next 18 months, a PP Online poll reveals.
Tahn SharpeSeptember 28, 2018
Royal Commission
Hayne report to push new advice standard
“Most wrongdoing is done by good people,” The Ethics Centre executive director Simon Longstaff says, while discussing the Hayne Inquiry’s upcoming recommendations.
Matthew SmithSeptember 27, 2018
Royal Commission
Inquiry could force banks to halve dividends
As the industry holds its breath for the commissioner’s recommendations, one expert warned that the gravy train of bank dividends could come to a grinding halt.
Tahn SharpeSeptember 27, 2018
Royal Commission
Appetite for acquisition: what motivated buyers want
Buyers of advice businesses want to build scale despite the uncertainty that's hovering over the industry, they're just taking care to be smart about it.
Matthew SmithSeptember 26, 2018
Royal Commission
Advisers see regulation, FASEA standards hindering growth
New research shows the compliance burden and FASEA’s impending standards are the greatest perceived threats to growth. Advisers will look to licensees for help.
Tahn SharpeSeptember 24, 2018
Royal Commission
Where to now for the life insurance industry
It is going to be more important than ever for life cover to be sold by advisers who have a deep understanding of why people might need it, writes Andrew Main.
Andrew MainSeptember 19, 2018
Royal Commission
NAB nixes ‘wealth’ in leadership shuffle
Changes to the bank’s executive team lead to abandonment of the term ‘wealth management’, amid reputational damage control.
Tahn SharpeSeptember 17, 2018
Royal Commission
Many advisers are planning to fail: research
As long as revenue keeps rolling in, advisers think everything is going to be fine, new data shows – but the truth may well be different.
Matthew SmithSeptember 14, 2018
Royal Commission
TAL’s covert surveillance revealed at Hayne inquiry
The insurer hired a private investigator and used medical professionals to find evidence that would allow it to discontinue an expensive claim.
Ben HurleySeptember 14, 2018
Royal Commission
CommInsure grilled by Hayne inquiry
CommInsure's Helen Troup accepted the bank was motivated by "commercial considerations" in not updating a heart attack definition, which led to rejections of valid claims.
Ben HurleySeptember 12, 2018
Royal Commission
More class actions against retail funds ‘within weeks’
AMP and Commonwealth Bank’s Colonial First State were singled out by a law firm that could file class actions in which “a third of adult Australians” could be eligible.
Matthew SmithSeptember 11, 2018
Royal Commission
Insurance round opens with long list of misconduct
The fist insurance round of the Hayne royal commission got under way with council assisting Rowena Orr producing a long list of admitted wrongdoing by industry giants.
Ben HurleySeptember 10, 2018
Royal Commission
Royal commission unlikely to boost Millennial super funds
The fallout from the revelations of the royal commission won’t lead to a boon for newer funds targeting the younger age cohort, according to Grow Super’s Joshua Wilson.
Alice UribeAugust 29, 2018
Royal Commission
Retail funds take heat in Hayne searing of super
It was the big retail brands – NAB, CBA, AMP, IOOF and ANZ – that ended up wearing the brunt of the commissioner Hayne’s ire during the fifth installment of the royal commission.
Ben HurleyAugust 28, 2018
Royal Commission
ASIC puts banks, AMP on notice; IOOF, APRA probed
ASIC expects proceedings soon on fee-for-no-service and a long history of dealings between APRA and IOOF come in for scrutiny.
Ben HurleyAugust 20, 2018
Royal Commission
Time to ‘reflect and reform’: O’Dwyer
The financial services minister has implored the industry to draw a line in the sand in the wake of the royal commission. The opportunity, she says, is unprecedented.
Tahn SharpeJuly 26, 2018
Royal Commission
The advisers who knew too much
Advisers with the most experience might also be the riskiest to employ in the eyes of wealth management firm owners, new research shows.
Matthew SmithJuly 13, 2018
Royal Commission
Ex-bank advisers need not apply
A recruitment specialist says private advice firms are reluctant to consider hiring ex-bank advisers, but industry super funds are increasingly willing to bring them on board.
Tahn SharpeJuly 9, 2018
Royal Commission
A moveable feast: where advisers will land in 2019
Proposed bank spinoffs and disposals, along with the exit of a top-10 dealer group, have the industry in flux. Here’s what advice ownership could look like in 2019.
Tahn SharpeJuly 3, 2018
Royal Commission
CBA joins the great wealth escape
The disintegration of the institutional wealth advice model is happening. The banks are announcing sell-offs, spin-offs and divestitures of their wealth management businesses.
Matthew Smith and Tahn SharpeJune 25, 2018
Royal Commission
Expect legislators to come down hard: Bernie Ripoll
Politicians will have plenty of motivation to drop the hammer on the financial planning industry, the architect of the Future of Financial Advice reforms told Professional Planner.
Matthew SmithJune 21, 2018
Royal Commission
Battle of the ban: the conflict to end grandfathered commissions
The FPA and ASIC have drawn a line in the sand. The time has come to end grandfathered commissions, they say, but many predict harmful unintended consequences. Matthew Smith writes
Matthew SmithJune 20, 2018
Royal Commission
What if the advice industry were already a profession?
Issues that arose during the royal commission public hearings might have been treated differently had a profession, as defined here, existed at the time.
Simon HoyleJune 19, 2018
Royal Commission
Licensees must be proactive rebuilding trust: De Gori
Advisers need to demystify planning and educate the wider public on what great advice can do for them. But they need assistance, and that’s where licensees come in.
Tahn SharpeJune 4, 2018
Royal Commission
Now might be a good time to sell your practice
Valuations of commission-based businesses will come under more pressure from buyers as risks related to the future of these income streams develop.
Matthew SmithMay 30, 2018
Royal Commission
Hayne inquiry didn’t uncover real issues: poll
A Professional Planner survey has revealed that 70 per cent of advisers don’t believe the hearings cut through to the most pressing problems the industry faces.
Tahn SharpeMay 29, 2018
Royal Commission
Show your worth: the new licensee value proposition
The days of subsidised advice within vertical integration may be numbered. As the industry evolves, licensees will have to do more to show their usefulness.
Ben PowerMay 23, 2018
Royal Commission
Holes remain while royal commission plays out
Twenty of the 50 recommendations the ASIC Enforcement Review Taskforce made are on hold while the high-profile inquiry continues, despite being agreed to by the government.
Tahn SharpeMay 21, 2018
Royal Commission
Royal commission wrap: the waiting is the hardest part
Advisers are left to speculate about reform recommendations while they endure months or more of dread before Kenneth Hayne files his report.
Andrew MainMay 9, 2018
Royal Commission
Royal commission just keeps getting worse
As if the problems the inquiry has uncovered aren’t bad enough, the complaints processes don’t necessarily offer consumers relief, Max Newnham writes.
Max NewnhamMay 8, 2018
Royal Commission
NAB’s Hagger explains why the time is right
Speaking to Professional Planner on the day of the bank’s announcement that it will sell the bulk of its advice division, chief customer officer Andrew Hagger expounds on the move.
Tahn SharpeMay 3, 2018
Royal Commission
Resignation announcement adds to AMP’s woes
Statements in AMP’s announcement of the departure of its chairman raise further questions about who influenced a report on fees for no advice.
Andrew MainMay 2, 2018
Royal Commission
Mopping up the mess: where to start
The aftermath of the inquiry will entail a good deal more uproar before the clean up begins. Then the real work gets under way.
Andrew MainMay 1, 2018
Royal Commission
Man in the mirror: Advisers committed to making a change
Professionalism in advice matters, and the journey there starts with personal accountability.
Jason AndriessenMay 1, 2018
Royal Commission
Punishment or wet lettuce?
The inquiry’s look at institutions’ handling of complaints hasn’t exactly turned up harsh retribution for offenders.
Andrew MainApril 27, 2018
Royal Commission
Revelations, regulation and sullied reputations
As the details of misdeeds at the big end of town flood out of the inquiry, the industry’s many upstanding advisers are seeing their hard-earned stature swept away.
Andrew MainApril 24, 2018
Royal Commission
Here’s hoping it’s a royal jolt
There are many potential outcomes for the royal commission into the banks, but it could all be worthwhile.
Simon HoyleNovember 30, 2017
Royal Commission
Planners split on banking royal commission call
Financial planners are split on opposition leader Bill Shorten’s proposed royal commission into banking and financial services, with a slight majority saying they do not approve
Professional PlannerAugust 17, 2017