Unmet financial advice requires customer centric focus: SMSFA

The unmet financial advice needs of older Australians necessitates a customer centric advice framework, says SMSF Association CEO John Maroney, drawing an analogy to how health care is provided. Maroney raised the issue of unmet financial advice making it harder for older people to plan for their retirement, in a recent address. “The level of… Continue reading Unmet financial advice requires customer centric focus: SMSFA

51% of advice from super funds may not have complied with law, ASIC finds

A review of super fund advice files by ASIC has found that 51% don’t demonstrate compliance with the best interest duty and related obligations. ASIC has surveyed 25 superannuation funds about how they give advice to members. As part of this, the regulator found that 51% of financial advice files reviewed – which excluded general… Continue reading 51% of advice from super funds may not have complied with law, ASIC finds

Westpac disregarded best interest of super rollover customers, Court finds

The Full Federal Court has found that subsidiaries of Westpac gave personal financial advice over the phone, in breach of their financial services licences, in an attempt to get customers to roll their super into funds connected to Westpac. “Westpac pursued its own self-interest and disregarded the best interests of its customer,” says a ruling… Continue reading Westpac disregarded best interest of super rollover customers, Court finds

Costly regulations driving accountants out of financial advice

Complex and costly regulations could result in a dramatic reduction in the number of accountants offering financial advice. According to CPA Australia’s Regulatory Burden Report, 24.2% of accountants currently offer financial advice services. But 12.5% are considering stopping offering these services, while only 3.7% are thinking about moving into the space – potentially resulting in… Continue reading Costly regulations driving accountants out of financial advice

Those already advised significantly more interested in super advice

People who have already received financial advice are significantly more interested in getting advice on a range of topics – including superannuation. ASIC has released the findings of research into what consumers think about financial advice. One of the findings is that people who have already received advice are more interested in getting advice. “The… Continue reading Those already advised significantly more interested in super advice

75% of bank superannuation switching advice non-compliant: ASIC

A review of advice by the big four banks and AMP found that 75% of advice to switch to in-house superannuation platforms was non-compliant. ASIC has been conducting a review of vertically integrated financial institutions and conflicts of interest. The review involved the big four banks (ANZ, CBA, NAB and Westpac) and AMP and occurred… Continue reading 75% of bank superannuation switching advice non-compliant: ASIC

More SMSFs turning to accountants for investment advice

SMSFs are increasingly turning to their accountants for investment advice. The number of SMSFs using an accountant for investment advice has reached 86,000, up from 73,000 in 2016, according to the 2017 Vanguard/Investment Trends SMSF Report. This may be driven by the licensing change for SMSF advice. More SMSF trustees are also reporting that they… Continue reading More SMSFs turning to accountants for investment advice

No Commonwealth Bank financial advice Royal Commission

The Government has said there will not be a Royal Commission into financial advice by the Commonwealth Bank, in a response to a Senate Committee report. A “judicial inquiry or Royal Commission” into financial advice at the Commonwealth Bank was a recommendation of the Senate Economics Committee inquiry into the performance of the Australian Securities… Continue reading No Commonwealth Bank financial advice Royal Commission

ASIC sets out key challenges for 2014/15 in Strategic Outlook

ASIC has released its Strategic Outlook for 2014/15, which “sets out the key risks ASIC sees to the markets it regulates, and how ASIC will respond.” According to the document one of ASIC key challengers in 2014/15 is the “structural change in our financial system through growth of market-based financing, which is largely driven by… Continue reading ASIC sets out key challenges for 2014/15 in Strategic Outlook

Consumers don’t know who owns their financial planner

Statistics published by Roy Morgan show that consumers perceive financial planners branded differently from their actual owners as far more independent than they rank bank-branded financial planners. All the big four bank’s financial planners rank low for perceived independence by consumers, as Roy Morgan says “the planners belonging to all the major banks and labelled as… Continue reading Consumers don’t know who owns their financial planner