Even though most of the Dixons Advisory complaints are yet to be submitted, the CSLR has already allocated a $24 million bill to the industry. Good financial advisers will be forced to pay for the nefarious and neglectful acts of bad ones for years to come.
After years of regulatory turmoil and a violently shifting business landscape, the advice industry may be on the cusp of a relatively calm period. For advisers, this could be the right time to reflect, revise and even reset their business.
FSC bulks up its financial adviser representation stocks
The Financial Services Council (FSC) this week took its most significant step into financial advice representation after announcing a raft of director and membership appointments from the sector.
In a media release sent Tuesday the FSC announced that it would bring on four new directors, two of which were from its traditional member base of fund management product providers. The other two, however, however, were from advice groups; WT Financial Group managing director Keith Cullen (pictured, left) and Fortnum Financial Group managing director Neil Younger (pictured, right).
Additionally, the FSC has admitted a host of new financial advice businesses into its membership base, including major licensees Fortnum Private Wealth, Count Ltd, Infocus and WT Financial Group, as well as fintech Otivo and Insignia’s new Rhombus Advisory Group.
While the FSC has had a small number of advice groups in its membership cohort for some time, and advice business representation on its board, the group made clear that the appointments are part of a strategic move to increase its presence in financial advice.
“The appointment of four senior industry leaders to the FSC board brings new depth of expertise to the FSC board and will further strengthen our representation of the industry,” the FSC stated.
“In addition to the appointments, the FSC has welcomed new financial advice businesses to its membership to deepen its engagement with the sector. This new model of engagement will add the advice licensees’ expertise to the FSC’s policy development processes and comes at a critical time in the financial advice reform debate.”
According to FSC chief executive Blake Briggs, part of the reason the council is moving towards advice is so that it is better equipped to lend its voice on advocacy and policy reform.
“The FSC has a leading role unifying the industry on reform initiatives, and I am pleased to have this opportunity to appoint directors from the financial advice sector to deepen our engagement and strengthen our advocacy on advice issues,” Briggs said.
The advice appointees followed a similar tone, with Cullen highlighting advice industry reform as a priority and Younger pinning his focus on regulatory development.
“At a pivotal time for the financial advice profession, I look forward to contributing the experience and insights of financial advisers and licensees to the FSC’s policy development, to help deliver a more efficient regulatory framework for financial advisers and their clients,” Younger said.
