Many investors in large funds plan to open their own SMSFs, while trustees of SMSFs are considering the large funds. It’s highly contestable while asset allocations are also changing.
Tag Archives | financial advice
Statements by Brian Hartzer, CEO of Westpac, confirm that financial advice delivered by advisers to the mass market is not financially viable, and technology is the solution if most Australians are not to miss out.
Recent legal cases involving Westpac and BT put to rest any view that ‘caveat emptor’ (buyer beware) applies to ‘no’ and ‘general’ advice service models, even though those models do not attract a best interests duty.
Financial advice took at battering at the Royal Commission, but if the focus starts on the client’s goals and eliminates conflicts, changes can set the industry up for a better future.
It was not supposed to be the Financial Advice Royal Commission, but there is significant focus on advice, including a little-discussed reduction in the ability to pay advice fees from a super fund.
Financial advice commissions and grandfathering have become among the more contentious issues at the Royal Commission. Here’s everything you need to know about where they came from but were afraid to ask.
Humans “are fantastically adept at rationalising and believing what we want to believe.” The Royal Commission received fascinating research on conflicts of interest and why financial advisers compromise best interests duty.
In a response to Graham Hand’s article on why roboadvice is struggling, the case is made that conventional financial advice will increasingly confine itself to the wealthy, and the mass market needs another solution.
Financial adviser education, training and legislating ethical standards will help improve ‘best interests’ practices, but what about adviser experience? This important quality is near impossible to regulate.
Mental Health Commissioner, Lucy Brogden calls on financial industry professionals to better address their clients’ needs for advice that supports both financial and mental health.
More advisers want control over their businesses for the benefit of themselves and their clients rather than operating under institutional guidelines, and software providers are facilitating the change.
Grandfathering and the implications for commissions has become a major flash point, and the Royal Commission is focussing on problems created when advisers are given the wrong incentives.
The Royal Commission is exposing the product / advice disconnect, and different rules are required for aligned and non-aligned advisers to recognise the conflict in vertical integration. The medical profession is a model.
The Royal Commission’s attention switched from the big players to a small independent advice firm with only six staff, but it showed the potential for conflicted advice runs deep.
Following the Ripoll Inquiry in November 2009, the Labor Government formulated the Future of Financial Advice proposals. A lot has happened since, and the Royal Commission is dealing with the consequences.
Financial advisers, especially in vertically-integrated firms, attached a product sale to the advice, confusing clients and setting off a chain reaction where regulators stepped in. The reputation of financial advice was compromised.