Well if you’re in Victoria you’re either back in lockdown or you missed it by the skin of your teeth. The rest of the nation is watching on – feeling for you but also hoping we’re not next.
Here’s what’s happening in Advisory this week:
- Anxiety is running high. Two peak financial advisory bodies have told the House of Representatives economics committee on Tuesday their members are in a heightened state of anxiety. “The sheer weight and number of reforms, we’ve seen so much reform,” Association of Financial Advisers chief executive Philip Kewin told the committee. Everyone’s committed to professionalism, but the journey to professionalism has been so rapid and the change has been so monumental that it has put an extreme amount of pressure on financial advisers.” Many in the sector are struggling, while others have left the profession all together. More here.
- FASEA exams. Advisers are required to take the new exam by the end of 2021. However, out of 23,000 advisers only 7,000 have taken the test to date.
- Prepping for recessionary conditions. It’s something advisers can help their clients with – helping them make smart decisions like pay off high-interest debt or establishing an emergency fund. More handy tips here. AMP investigation. Labor Senator Deborah O’Neill, has requested ASIC investigate AMP for changes to contracts with outgoing financial planners that have left many in debt. AMP changed the terms of arrangements with its financial planners last year, reducing the value of many advice businesses by more than one-third. Under the arrangement, known as the buyer of last resort (BOLR), AMP would purchase client books of retiring advisers for four times the annual revenue but this was reduced to 2.5 times in an effort to cut costs. More here.
- Happy new financial year! The psychology of markets or behavioural economics has never been more important than during these very uncertain times. Market Strategist Michael McCarthy analyses how you can be a profitable trader during these crazy times in his AFR column here.