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A white paper issued by the Financial Services Council (FSC) which proposes a new advice framework has been widely praised. However, the director of a dealer group has questioned the peak body’s intentions.
The advice group supports many of recommendations of the white paper but has questioned the motives of the Financial Services Council and whether risk advisers should trust it.
“Who knows what the ASIC levy is going to be by the way – last year they forecast that it was going to be $1,500 and it came in at $2,400,” Trapnell said. “If an adviser leaves a licensee, goes somewhere else or leaves the industry, that licensee would quite rightly charge the adviser what the ASIC levy is going to be. “The ASIC levy is calculated as a levy based on the number of authorised representatives in the licensee as at 30 June each year, but it is not charged to the licensee until January, so that six-month period – half a year – any adviser that leaves, the licensee we...
Empowering consumers to say yes Empowering consumers to say yes The regulatory framework around risk advice makes it an impossible sell to consumers, highlighting the desperate need for regulatory change, writes Synchron’s Don Trapnell. A A A man walks into a shoe shop and tells the sales assistant he wants to buy a pair of black brogues. The assistant says, “Before I sell them to you, I have to make sure that black brogues are fit for your purpose. What, exactly, do you want them for, and when and where are you planning on wearing them?” The customer tells the assistant that he plans...
As with everything else, the exam was affected by the COVID-19 pandemic which meant the introduction of remote proctoring. And finally, Santa Claus arrived early for many advisers as the Government announced FASEA would be rolled into Treasury and the Australian Securities and Investments Commission (ASIC). The ending of FASEA did little to change education requirements, but given how difficult FASEA had been to work with and the anxiety in the industry, there was optimism it might help usher in other changes to make the education requirements more workable to retain more advisers. By its...