Tom Reddacliff News Today

Quality of Advice Review lead Michelle Levy discussed in detail her ‘good advice’ proposals with Professional Planner and how the regime would prevent the return of conflicted advice models from major institutions.

The industry hit a new low in terms of adviser numbers, but the evidence showed that advisers willing to commit to professionalism would be rewarded. Meanwhile, Jane Hume’s tenure leading the financial services industry came to an end after Labor’s win in the federal election.

Three consulting firms have joined forces on a submission to the Quality of Advice Review, highlighting the need to follow the UK’s regulatory model of clearly labelling the difference between restricted advice and independent advice models.

The Koda Capital deal with Emigrant Partners has brought attention back to the holy grail of wholesale advice, but Encore's Tom Reddacliff says this model won’t work for everyone. At Professional Planner's Licensee Summit he will be leading a panel on the merits of different advice models and the future of advice businesses.

Addressing how vertically integrated business models are regulated will have to wait another day; the controversial product distribution method that came under heavy scrutiny during the Royal Commission is not mentioned in the advice review’s terms of reference.

The corporate regulator is looking for opportunities to test its product intervention powers under DDO but is still in the “early days” of figuring out how to use that power.

Banding together on retirement advice Promoted by Allianz Retire+ Players across the retirement income industry have come together to work on a better system for advisers and Australians at the end of their working lives, as the industry shifts and cash rates stay low. A A The Retirement Income Review had a lot of insights, but perhaps most importantly for advisers, it acknowledged the importance of accessible advice in helping retirees navigate the end of their working lives. A lack of financ...

Clockwise from top left: Karen Eleyu, Steven Fine, Simon Burke and Peter Horsfield While researchers and Professional Planner poll respondents predict adviser numbers will soon drop to 13,000 and below, many industry observers quietly predict the number will settle at a far more conservative 15,000 to 17,000. A recent Professional Planner poll asking advisers “ How low will registered adviser numbers go before they stabilise and start to grow again?” received a grim response; 17 per cent ...

The only advice model that works for advisers now and in the future is an active advice model, where advisers are more engaged and embedded into the financial lives of their clients according to Encore Advisory managing director Tom Reddacliff. Speaking on the Advice Evolution in 2021 webinar with Consultancy Evergreen’s Angela Ashton, Reddacliff explained how the regulatory push for ‘active advice’ will become an all-pervasive trend at the advice practice level this year. “Active is t...

“That might surprise people – that there have been more licences handed back than has been created in recent times,” Reddacliff said. “A lot of people are handing back licences within five years… You typically get a licence, you go through a few professional indemnity (PI) renewals and then close to 50% are handing them back within that time. “Having your own licence is now is something you have to take very seriously and have the right infrastructure and setup around you – the pe...