NMPE ReVue – Friday, November 22

Alex Burke,  Senior Writer,  No More Practice Education

AFA calls out confusion in the FASEA regime

Reflecting on FASEA CEO Stephen Glenfield's recent Senate Estimates comments, Association of Financial Advisers general manager, policy and professionalism Phil Anderson said: "Neither the Professional Standards for Financial Advisers Bill nor the Explanatory Memorandum includes any statement that suggests that only CPD undertaken at the bachelor degree level could be counted towards the education standard."

Anderson continued: "The recognition of the Advanced Diploma of Financial Planning is proof that FASEA can approve training that is not at a degree level.

"This discussion also seems to be mixing up the approval of professional designations (which FASEA have chosen to define as being required to be at the Graduate Diploma level (AQF 8)), as opposed to the recognition of regular CPD activity that advisers have been required to do for many years."

Why risk specialists are dying out

According to new Investment Trends research, the number of risk specialists - that is, those who derive over 50% of their total practice revenue from providing risk advice - has fallen from 34% of the industry five years ago to 15% today.

Commenting on this, Investment Trends senior analyst King Loong Choi said: "As more planners seek to diversify their advice proposition and focus more on holistic advice, the risk specialist planner has become an industry niche."

Choi continued: "The admin burden of compliance and paperwork, coupled with an uncertain regulatory landscape, are the top challenges that prevent financial planners from growing their insurance advice.

"As a comparison, fewer planners consider client-related challenges to be significant, with only 16% saying it is challenging to demonstrate the value of insurance to their clients and 12% citing client engagement/retention as an issue."

HNW advice group hires new director

Crestone Wealth has appointed Barbara Ward as an independent non-executive director.

Ward is also a director of Qantas Airways, Caltex Australia and Brookfield Multiplex Group. Previously, she held roles at CBA, Lion Nathan, the Sydney Opera House Trust and the Sydney Children's Hospital Foundation.

Commenting on her new role at the HNW-focused wealth group, she said: "In this period of disruption for wealth managers, Crestone has developed a unique operating structure and offering, being owner operated and providing advice to wholesale clients exclusively."

“Crestone’s approach has been embraced by the high-net-worth segment and the interaction with clients and breadth of investment solutions is second to none in the Australian wealth management landscape. I am looking forward to supporting the strategic development of the business as we continue to grow over the coming years."


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