The year of 2012 looks set to be the year that change comes to town.
On a global scale we have the impending crisis in Europe, questions over the stability in the US in an election year and the slowing of China's economy.
On a local scale there is the constant to-ing and fro-ing of the Government and the Opposition, so it feels that every day is an election day with reforms always on the debating table.
The FOFA reforms are planned kick in on July 1, ASIC will release its own FOFA guidance plan on the same date and if it goes to the Government's plan, it will be the start of a long reform implementation.
But beyond that there is also SuperStream waiting in the wings. While much hasn't been said to date on this reform, obviously FOFA is of a more pressing concern for the financial advice community, it feels that we may soon be surprised at the impact SuperStream will have across the financial services industry.
The low income superannuation contribution (LISC) comes into effect from July 1 which will see people earning up to $37,000 pay effectively no tax and will also be streamlined, so low income workers won't have to fill out a tax return form.
The increase in the tax free threshold from $6,000 to $18,200 from 1 July 2012 will free around one million low-income earners from needing to lodge a tax return.
What will this mean for financial advisers will not only have to get their own practices up to FOFA speed but they will also need to be across all financial services reforms to ensure compliance and best practice for the clients.
Stepping away from the external pressures we face, a positive and clear goal for the financial planning industry is also to increase the number of Australians being helped by financial advice.
The Financial Planning Association (FPA) said the FOFA reforms are presenting an ideal opportunity for advisers to reach out to new clients who will now have the regulatory support that they are receiving quality, trustworthy advice.
Perhaps this is the positive approach all advisers can be taking for 2012. Use FOFA and other reforms to your advantage, to attract new clients and promote the benefits of financial advice to the vast majority of Australians that aren't seeking it out.
This month's case study is from Paul Bolstad, an AMP financial planner and director at boutique financial planning firm AGS Financial Group, who applied a self-managed super funds borrowing strategy for one couple new to the world of self-managed super funds.
Now a couple on the verge of retirement is safe and secure in their plans for the future, something that you cannot put a dollar value on.
Now that is something to get excited about.
