Colonial First State builds out new adviser distribution arm
Colonial First State is revamping its distribution functions, renaming the distribution team to CFS Advice Relationships.
As part of this, CFS has also appointed a new general manager for Advice Relationships, Bryce Quirk, who joined earlier this year as head of retail sales. Before CFS, he spent 10 years at BT Financial Group in various adviser distribution roles.
Quirk succeeds Peter Chun, who departed to join First State Super.
APRA chief hits back at remuneration controversy
Speaking at the Women in Banking and Finance Series Luncheon, APRA chair Wayne Byrnes reflected on the regulator’s stance on incentives-based remuneration in finance. Referencing the findings of the Royal Commission on this topic, he discussed the proposal made by APRA in July this year to:
- Expect more active board involvement in determining remuneration outcomes
- Cap on the use of financial metrics when determining remuneration outcomes, and
- Implement longer vesting, combined with malus and clawback, for a longer period of time “and ensure short-term rewards cannot be enjoyed without regard to longer-term outcomes
Byres noted some of these proposals have caused a “fair amount of angst,” noting that “at least some boards have apparently been told that if they change their arrangements to comply with APRA’s requirements, they will be met with protest votes at AGMs.”
Byres argued this was a “strange and disappointing response to a board that would be seeking to comply with the law, but is illustrative of the passion that this topic has aroused.”
Actuaries shine light on outdated retiree metrics
In a research note, the Actuaries Institute called for an update to software used to estimate retirees’ longevity and calculate how to make savings last throughout their lives.
Noting the material impact longevity tables have on how retirement income strategies and products are evaluated, the Institute said: “To have more than a coin-toss chance that a person’s retirement planning horizon is sufficient, you need to look at the timeframe that gives 80% or more certainty of being sufficient.”
The letter added: “Retirees wanting confidence need to know what age to plan to in order to have, say, 90% certainty their planning horizon is sufficient. If the lens through which we view retirement is inaccurate, then incorrect conclusions will be drawn about retirement strategies and products.”
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