When can SMSFs be treated as wholesale?
It's a vexed question as to when SMSFs can be treated as wholesale investors. Here, senior AFCA representatives run through what financial advisers need to know.
Do we really want less choice for Australian retirees?
Last week's conveniently ‘leaked’ government proposal on its plans to revolutionise retirement income for all Australians has brought retirement back into the headlines. The detail aside, the proposal couldn’t have come soon enough.
Good roadmap needed for updated AML law
In September last year, the Australian government fixed a glaring anomaly in the country’s laws, under which Australia had embarrassingly fallen short of global standards in fighting financial crime.
FAAA slams 'almighty go-slow' on CSLR/Dixons inquiry
While the second tranche of DBFO reforms remain stuck in parliamentary mud, an inquiry into the CSLR design and Dixons Advisory scandal is already falling behind.
Regulatory pendulum has 'swung too far': FSC
As a result of reform failures, the industry and its consumers are now enduring the "costly overhang" of poor regulatory design and regulation, the council boss said.
Advice reform and tax 'razor gang' lead FSC's economic growth agenda
While the council's plan for broad tax reform will grab headlines, its three recommendations for the advice industry have the potential to radically uplift the overall health of the financial services sector.
'But for' compensation stoush brews between the FAAA and AFCA
AFCA stands by the use of its "But for" methodology to calculate compensation payments, despite the FAAA's protestations. Clients will get paid what they lost, plus what they would have earned if the advice wasn't inadequate. Just don't call it payment for theoretical loss, or opportunity cost.
New class of advisers limited to prudentially regulated products: Jones
Most of what Jones announced was already known, including a new class of advice. But a few key elements – related to adviser education, product limitations and scoped advice – should provide extra relief to an industry in dire need of reform.
Shield Master Fund investigation has ASIC worried about adviser 'professional judgement'
"I wish I could say this is an isolated example," Kirkland said, explaining the regulator's concern about a small cohort of advisers who transfer client funds into high-risk investments after being referred by cold-calling telemarketers.
What advisers want the new class of advisers to look like
The likely advent of a new class of 'simple' advice providers will reshape the industry ecosystem. According to FAAA members, there are four key issues that need addressing before this key reform is implemented.
AI in advice a matter of how, not if: Complii
Advice groups may still be grappling with the best use cases for artificial intelligence tools, but the ones that aren't at least trying are at risk of being seen as behind the curve according to Complii's Craig Mason.
'Reflect and reconsider': ASIC chair calls for complexity cull
The legislative threads surrounding financial services "look less like an elegant tapestry and more like a painting by Jackson Pollock", the ASIC chair said, before announcing a new thinktank to reassess ways the regulator can help make the system more efficient and less complex.
Jones announces immediate change to 'complex and confusing' CDR framework
Despite its potential and the massive investment behind it, the Consumer Data Right has had little impact due to a host of factors. Frustrated with its low take-up, the government is making changes to put the framework on "more sustainable footing".
Life insurance advisers plead for reform before election muddies the water
While the government takes its time drafting the second tranche of advice reforms, representatives for the life insurance agency fear the ongoing delays will spill over into the next federal election, which could mean the can gets kicked down the road even further.
FSG exemption 'almost entirely redundant': Lawyer
For advisers that have already started relying on website disclosure, the unclear legislation "may or may not" be an issue, the Cowell Clarke lawyer explained. Whatever approach advisers are currently taking, they should all be paying attention when the regulator releases its guide next month.
Compliance salaries surge as super funds, private capital hunt for risk talent
Compliance staff have been in high demand for a few years now, but the rise of industry super funds and the private capital sector has created even more demand for talent, both at the top and bottom end of the experience spectrum.
Compliance is 'hollow, empty' without the right culture: ASIC's Longo
Rather than striving to tick legal boxes, the commissioner said, compliance teams should build their work practice around the right ethical pillars to engender trust with consumers and investors.
ASIC sounds the alarm on third-party product distribution
On the whole, product providers like fund managers have "made progress" with their adherence to target market determination rules. But ASIC warns that when third party distributors come into play, compliance standards begin to slip.
Power of attorney practices 'inconsistent', and under-served by advisers: Report
A landmark report has uncovered a frightening lack of understanding about a financial enduring power of attorney, with financial advisers surprisingly under-represented.
Time to get proactive on $3M super tax changes strategies: KeyInvest
The new rules around superannuation balances over $3 million have many searching for ways to mitigate the impact. The tax advantages of investment bonds may provide a viable alternative.
