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While the second tranche of DBFO reforms remain stuck in parliamentary mud, an inquiry into the CSLR design and Dixons Advisory scandal is already falling behind.
The industry’s struggle to identify new talent is likely to continue, but the outflow of advisers has slowed considerably. And there are plans to source talent from other corners, according to the FAAA.
AFCA stands by the use of its “But for” methodology to calculate compensation payments, despite the FAAA’s protestations. Clients will get paid what they lost, plus what they would have earned if the advice wasn’t inadequate. Just don’t call it payment for theoretical loss, or opportunity cost.
The industry has little chance of fighting through the legislative backlog and getting immediate wholesale change made to the ill-designed CSLR. There are things the government can do in the interim, said the FAAA, but who’s listening?
The likely advent of a new class of ‘simple’ advice providers will reshape the industry ecosystem. According to FAAA members, there are four key issues that need addressing before this key reform is implemented.
As part of the strategic partnership, Indian CFP aspirants will have a pathway to gain qualifications that meet the Australian regulatory framework. It’s a bold plan, but one that could help shore up adviser numbers according to the FAAA.
The merged association has added a new core driver to its strategic objectives for the next six years, with growing the profession now a top priority. But the inherent challenges, and past failures, are forcing the FAAA to try new ways of getting more advisers on the books.Â
It came as a relief instrument rather than the expected guidance note, but ASIC’s move still managed to give advisers the surety they need to legally use the FSG exemption.
The evolving nature of advisers’ client bases, and the work they do for different parts of those, is leading to title creep. But there is little in the way of official guidance on what titles are appropriate.
“It isn’t really a surprise,” FAAA chair David Sharpe said, noting that advisers with CFP next to their name go through “blood, sweat and tears” to attain the designation.