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.
'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.
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.
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.
FAAA to consult with Treasury over CSLR 'unintended consequences'
While the minister has remained relatively mute on the obvious issues with the CSLR, he will at least allow the association to discuss the scheme's flaws with Treasury at some point.
The FAAA's 'Angry Anderson' sounds off on Dixon Advisory drama
Appropriately enough, it took a regulatory breakdown to finally ruffle the policy chief's feathers. In the first of a series of whitepapers aimed at collating the issues, Phil Anderson lays bare the failures of government, ASIC and E&P Financial Group.
Time's up on sloppy FAR record keeping: ASIC
Licensees were given a month to clean up the information they provided to ASIC about adviser qualifications and training. That time is up, and enforcement action is not off the table.
Two tweaks to DBFO bill set industry at ease on super in advice rule changes
The government addressed perceived ambiguity around advice fee deduction from member accounts by pulling out two statements from the bill that essentially duplicated rules that already exist in the sole purpose test.
Confusion reigns as government hedges its bets on advice in super
The government's line on its proposed changes to advice in super is incongruous with the actual changes. You can't re-do the language embedded in the SIS Act while denying that anything will be different.
'It's bittersweet': CSLR head explains the challenge of punishing and promoting advice
Just how thin the line that Berry walks becomes clear when he outlines the two paradoxical objectives of the CSLR. He has to highlight the worst in financial advice, while making it seem better and more trustworthy in the eyes of the public.
Amended QAR draft released without major changes to SOA checking rules for trustees
After the original Delivering Better Financial Outcomes bill was released in March, Treasury this week released an updated version for consultation. With minimal changes, there remains a significant bone of contention for the industry to wrestle with.
