Industry

In a letter released by the group Thursday it said “urgent action is needed”, and called the government’s impending response a “rare opportunity to deliver affordable and accessible advice to consumers”.

The green shoots that emerged for adviser numbers in the back half of 2022 were no fluke, with provisional advisers leading an industry resurgence after five years of decline.

Studies highlight just how much the benefit of financial advice is filtering into the public consciousness. After the pandemic, and with inflation soaring, the emotional upside of financial guidance is finally becoming clear.

The percentage of paraplanners that have ambitions to become qualified financial advisers has decreased dramatically, with several key drivers behind the change.

Advisers are rallying around the prospect of upfront advice fees becoming tax deductible after the ATO announced a review of Tax Determination 95/60.

The release of Michelle Levy’s preliminary advice review recommendations topped this year’s most read stories, yet the proliferation of well-read articles that carried an investment theme highlighted the interest of advisers in finding content evaluating what has been a choppy year in markets.

The Financial Services Council and its provider members are putting their weight behind the advice review leader’s suite of reforms as the December 16 delivery date looms.

Netwealth and HUB24 are expected to continue eating the incumbents’ lunch, according to UBS. Meanwhile, as adviser numbers have halved the average amount of money they manage has doubled.

The Corporations Act is “technology neutral” according to ASIC, so video SOAs are acceptable as long as they include the eight or so standard compliance requirements.

Review leader Michelle Levy said the proposals need to look at the “full universe” of providers. If ‘good advice’ is to replace best interests duty while also opening the gates to product providers, the duties involved will need to fully match the breadth of that task.

The NSW Supreme Court on Thursday ruled Perpetual would be on the hook for more than just a $23 million break fee should it abandon its bid to takeover rival fund manager Pendal Group, likely scuttling recent advances by a Regal Partners-led consortium for Perpetual itself.

Concern about Michelle Levy’s insurance advice consent proposal is off the mark and shouldn’t get in the way of reform, the association’s chief executive says.