The Regulator’s focus on culture underplays the agency of management, staff and advisers and provides a convenient excuse for poor choices. Rather than focusing on culture, perhaps its better to focus on consequences. Consequence Management is not a complete solution (monitoring, supervision and remediation are equally important) but focusing on consequence management is an effective and efficient way to create and maintain a good corporate 'culture'. Properly applied, it may also spare you adverse publicity.
Conflicts of Interest seem endemic in financial services. The Banking Royal Commission has identified potential conflicts in the mortgage broking and lending sector. Approaches to conflicts are not consistent across the financial services industry. This post examines the key elements and, with a focus on mortgage broking, proposes some solutions for the identified problems.
Francis Bacon wrote “He that hath [a Licensee] has given hostages to fortune; for they are impediments to great enterprises, either of virtue or mischief” or at least he would have had he been entertained by the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry. This article explores the acts and omissions of Licensees and the challenges facing licensees and advisers as a result of the Commission’s scrutiny of the financial services industry.
The mortgage broking industry has, for a variety of reasons, recently attracted an increased degree of regulatory attention. In the midst of a Royal Commission this is hardly likely to comfort alert mortgage brokers . As the Banks, that both dominate and compete with the mortgage broking industry, identify problems and propose solutions, brokers are left to puzzle out the likely consequences of these discussions. This article explores the reasons and the drivers for the anticipated reforms of the mortgage broking industry.
Robo-advice, and other technological applications, may have had less immediate impact than some participants predicted, but they're also likely to have a more profound impact than other participants expect. It's difficult to predict the future so we offer you some tools and insights to assist you - Starting with John McDuling's "Behind Spaceship's ASIC fine: drama, tension and false funding news" we add Gartners 'hype cycle', Mercer's Robo-advice report and Wired's excellent article "Beware of Roboadvisors Bearing Low Fees"
OpenAFSL, as a compliance platform, is constantly evolving in response to client suggestions, regulatory changes or our commitment to continuous improvement. Here are some of the refinements that went live on 1 April 2018. We think you'll love these but, spoiler alert, what till you see what's coming next.
In these series articles, two experts provide their (sometimes divergent) views of topics with which licensees and advisers sometimes struggle. They offer their opinions and occasionally some insight. Feel free to join the debate and offer your commentary. This article answers ten questions about managed discretionary accounts and it may help you identify the opportunities and challenges in embracing managed accounts.
As an advice professional, you know you need to actively consider your client’s needs, objectives and relevant circumstances. You understand your Best Interest Duty but remember that this requires more than a basic understanding of your client or a superficial acknowledgment of their needs.Good advisers don’t just listen to their clients, they ask better questions. This article explains how (and why you should emulate them).
For an industry already reeling from the implementation of the Life Insurance Framework, and anticipating worse from the Royal Commission, being told by the Parliamentary Joint Committee on Corporations and Financial Services (Life Insurance Industry) that they “must do better” is both depressing and disheartening. However, your mood might change when you notice their focus on the role and influence of product issuers and their attempt to move beyond remuneration arrangements to address systemic. This article will focus on the Consumer Protections, Codes, ASIC and Advice aspects.
In a four-state tour in March 2018, one of our team, Sean Graham, spoke at the ifa Business Strategy Day on "The rise of regtech and the art of the SoA".
Positioned as an "update on the compliance and legislative landscape", the session challenged industry assumptions about disclosure, independence and professionalism and demonstrated why an investment in regulatory technology is critical for sustainability.