Solutions for a simpler, wellbeing-driven financial advice modelBY MATT BROWN | FRIDAY, 11 MAR 2022 8:14AM How many financial advisers does it take to change a lightbulb? It's difficult to say because three are still doing the paperwork, two must go back to university and the others ... Upgrade your subscription to access this article
Join the growing community of financial advisers
with unlimited access to our latest news, research and analysis of the industry.
Become a premium subscriber today. |
Latest News
Count shutters limited-advice business, slips in size ranking
Count Financial has reportedly wound up its restricted SMSF/limited-advice service, losing some 26 advisers on the Financial Adviser Register, latest data shows.
Centrepoint Alliance acquires two advice firms
Centrepoint Alliance will acquire Queensland financial advice practices Cairns Wealth and Pinnacle Wealth for $3 million from Astute Financial Management.
Small pocket of failed measures can 'blow the entire business': Anderson
FAAA general manager of policy, advocacy and standards Phil Anderson warned licensees to improve their control measures for authorised representatives to avoid any unintended consequences.
AFCA puts InterPrac determinations on ice
The Australian Financial Complaints Authority (AFCA) is pausing all InterPrac Financial Planning-related determinations as court proceedings instigated by the latter are underway.
Further Reading
Cover Story
Advice with soul
SACHA BURCHGART
FOUNDER AND FINANCIAL PLANNING SPECIALIST
BURCHEART
FOUNDER AND FINANCIAL PLANNING SPECIALIST
BURCHEART
Though she initially tried, Sacha Burchgart couldn't escape the call of a career in financial advice; it just took staring down her own mortality to see what's possible when you do things differently. Jamie Williamson writes.
Expert Feed
Fixing the CSLR: the UK FSCS offers lessons - but not a blueprint
UK's equivalent scheme of the CSLR highlights the lack of stability and predictability it currently has, expert says.
Helping clients stay the course in volatile markets
Fidelity International's recent research shows many investors are maintaining a "long-term" perspective despite recent market turmoil.
Let's be honest: is it a tech stack... or just a stack of tech?
Financial advisers need to be aware that sophisticated technology does not always serve as a practical, effective tool.
At the crossroad of governance: the two choices for Australian fund managers
Internalising trustees, although lawful, weakens independent oversight and can expose a fund manager to greater risks than those outsourcing the capability ...
Changing the name of a document from Statement of Advice to Letters of Advice does absolutely nothing to improve communications between advisers and their clients.
Following the requirements of the Corps Act 2001, Ch 7, Subdivisions C & D instead of being slaves to ASIC requirements would immediately result in a simpler approach.
No-one is calling out ASIC for having introduced the complexity and confusion that now exists. Why not???
Simplifying the communications surrounding advice will not happen while bandaids are being applied. Someone needs to be intelligent enough to go back to source documents ie (Corps Act) and start again.
When I joined the financial advice industry as a (securities) adviser in 1986 'financial planning' was tagged as a new 'emerging' profession - 36 years later it's still 'emerging' and in fact it is arguably further away from emerging than it was back then!
As Sue commented, until somebody (hopefully the Productivity Commission) has the intellectual fortitude to differentiate the provision of advisory services (a 'professional' skill) from the financial 'product' issues (akin to the difference between a doctors diagnosis and then the proscription of a curing medicine) there is no hope for this industry.
Legislative changes to the authorising of Financial Advisers in 1992 ( and then the Managed Investment Act in 1994) were a clear 'wrong turn' at the time, embedding the control with the authorising body (an institution usually) - and haven't the likes of AMP, Westpac, NAB, CBA, etc. done just a dandy job with that!
ASIC has to work within the confines of the Corporations Act as Sue pointed out but they define everything they do within the terms of providing 'financial product advice' a clear indication they see provision of the advice and the product as one and the same thing. After 30+ years of watching ASIC and its fore bares in operation (and my direct involvement as the Responsible Manager for an AFSL), ASIC has demonstrated its complete failure as a regulatory body. Any role going forward for ASIC should just be confined to the enforcing /regulation of financial products and nothing to do with the provision of advice.