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OC TO B ER 2 019 VOLU M E 31 | I SSU E 0 9
The magazine for FINANCIAL PLANNING PROFESSIONALS
workplace
engagement MICHELLE SALES ON SHIFTING TEAMS
FROM DISCONNECTED TO CONNECTED
Phil Billingham CFP ®
RETAIL DISTRIBUTION REVIEW AND THE U.K. EXPERIENCE
CONTRARIAN INVESTING | DOWNSIZER CONTRIBUTIONS | 2019 CONGRESS
THRIVING WITH CHANGE | SOCIAL RESPONSIBILITY
Contents. OCTOBER 2019
FOCUS INSIGHT
6 NEWS 16 GLASS HALF FULL 18 WE’RE ALL IN
Latest news updates. Vincent Holland explains why THE SAME BOAT
certain financial planning firms The answers and solutions
8 VALUE IN ADVICE will thrive, and others will fail,
as the profession heads into
to problems facing the
New ASIC research reveals profession are all around us,
consumers see value in a new chapter. says Phil Billingham CFP®.
financial planning advice.
GROW LIFE LEARN
27 THREE SKILLS FOR 32 LIFE LESSONS 34 DOWNSIZER
BETTER ENGAGEMENT AT GIRLS ACADEMY CONTRIBUTIONS
As leaders, there are three Simon Chesson CFP® has Josh Rundmann explains
critical skills to help shift our enjoyed a 15-year involvement some of the common
workplace teams from feeling with the Girls Academy, which misconceptions about
disconnected to connected, helps Aboriginal and Torres downsizer contributions,
says Michelle Sales. Strait Islander girls complete as well as provides some
high school. tips to help maximise
this opportunity.
PUBLISHER ADVERTISING
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Money & Life Magazine is the official publication of M +61 414 375 371 M +61 404 118 729
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moneyandlife.com.au fpa.com.au MANAGING EDITOR
Level 4, 75 Castlereagh St, Sydney NSW 2000 Jayson Forrest
T 02 9220 4500 F 02 9220 4580 E fpa@fpa.com.au M +61 416 039 467
Paper + Spark, P.O. Box 443, Pyrmont NSW 2009 E editor@paperandspark.com.au
©Financial Planning Association of Australia Limited. All material All advertising is sourced by Paper + Spark. The FPA does not endorse
published in Money & Life is copyright. Reproduction in whole or part any products or services advertised in the magazine. References or
is prohibited without the written permission of the FPA Chief Executive web links to products or services do not constitute endorsement.
Officer. Applications to use material should be made in writing and sent Supplied images ©Shutterstock. ISNN 1033-0046. Cover and profile
to the Chief Executive Officer at the above e-mail address. Material images supplied by Adam Hollingworth. © Paper + Spark 2019
published in Money & Life is of a general nature only and is not intended
to be comprehensive nor does it constitute advice. The material should CFP , CERTIFIED FINANCIAL PLANNER and CFP Logo are certification
® ® ®
not be relied on without seeking independent professional advice and marks owned outside the US by the Financial Planning Standards
the Financial Planning Association of Australia Limited is not liable Board Ltd (FPSB). Financial Planning Association of Australia Limited
for any loss suffered in connection with the use of such material. Any is the marks licensing authority for the CFP marks in Australia, through
views expressed in this publication are those of the individual author, agreement with the FPSB.
except where they are specifically stated to be the views of the FPA.
Paper + Spark is the custom publisher of Money & Life (www.moneyandlife.com.au) for the Financial Planning Association of Australia (FPA).
We are a specialist digital content marketing and social media agency with deep Financial Services consumer and B2B experience. We create brand,
digital, social and content strategy that leads to reaching the right audience at the right time via the right channel to keep you agile and relevant in Circulation 13,600
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Focus.
ONE SHARED MESSAGE
Last month, the FPA and the profession achieved some big advocacy wins.
FASEA TIMELINES and 5-unit program) that has been running for
20 years, has now been formally accredited
The Government announced its intention
by FASEA as that of a post-graduate level.
to make changes to the FASEA timelines to
FASEA has also awarded two recognised prior
restore the two-year period to pass the exam
learning (RPL) credits to help in the transition
by extending the deadline for 12 months to 1
to degree equivalence.
January 2022. It also announced an extension to
the deadline for meeting the FASEA education Anyone who has obtained the CFP ®
standard by 24 months to 1 January 2026. designation in the last 20 years, or obtains
it over the next five years by completing all
These results mirror the recommendations
units in the program, will be eligible for two
we put forward through our joint advocacy
RPL credits towards the FASEA standard. For
efforts with the AFA. They were also amplified
those wanting to complete a Masters,
by hundreds of members who took this shared
you could obtain up to four credits.
message to their local MP.
RETHINK, REIMAGINE AND
I want to particularly acknowledge all the
FPA members, including many of our Chapter
REIGNITE AT CONGRESS
Chairs, who personally advocated with We’re on the home stretch to the FPA
their local MP. You each embody the spirit Professionals Congress (27-29 November).
and notion of ‘one message, many voices’. This is an important chance for our
Together, we are helping to ensure a solid professional community to come together
and fair framework for our profession. in a strong demonstration of unity.
These announcements have given many of I hope you can join me at our flagship event
us some relief by offering a more reasonable to celebrate the future of our profession and
implementation timeline. However, please support each other in person. The line-up of
remember the immediacy of the financial speakers and sessions is outstanding, and
adviser exam and education requirements that’s because it’s a program designed for
remain. I strongly encourage you to stay financial planners, by financial planners.
focused with your studies and undertake the
I look forward to seeing you there.
exam as soon as you’re able.
FURTHER CFP® CERTIFICATION
COURSEWORK AWARDED CREDITS
Last month, we also learnt the news from
FASEA that it has finally accredited the CFP ®
Certification Program 1-4 coursework, which
Dante De Gori CFP ®, CEO
commenced in 1999. This means the whole
CFP ® Certification Program coursework (4-unit
Follow Dante on Twitter @ddegori10
4 MONEY & LIFE | OCTOBER 2019
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News. FASEA EXTENDS CREDITS FOR
CFP® COURSE WORK
The Financial Adviser A maximum of two credits “The FPA submitted all other
Standards and Ethics Authority towards completion of higher additional pathways prior to
(FASEA) has extended its education requirements can 2003 for CFP ® Certification to
recognition of CFP ® course be awarded for an existing FASEA for accreditation, and
work prior to 2003, meaning planner who has completed we’re delighted that credits
that planners who commenced one or more of the prescribed have been awarded for this
the CFP 1-4 program course approved courses to attain a pathway. This decision by
work to attain the CFP ® professional designation. These FASEA recognises that the
designation after 1 July 1999 credits are in addition to any CFP ® designation continues
and before 31 December 2003, credits available for completing to be the globally recognised
are eligible to be awarded other relevant studies. gold standard in advice,”
two credits recognition for De Gori said.
In making the announcement,
prior learning in an approved
FPA CEO Dante De Gori “Of course, we still wait
Graduate Diploma.
CFP ® said the decision for FASEA to approve the
The approval is recognition acknowledges those financial outstanding pathways we
of the course content and planners who started before have applied for, so that all
assessments planners were Semester 2, 2003, and CFP ® professionals receive the
required to undertake to subsequently completed recognition they deserve.”
successfully complete the the FPA’s four unit CFP ®
CFP ® program. Certification Program.
FASEA DEADLINES EXTENDED
The Government has for Superannuation, “The Government has “We’re pleased that
announced it will restore Financial Services and done the right thing by Minister Hume has listened
the full two-year period Financial Technology, proposing to extend the to the feedback from our
for financial planners to Senator Jane Hume, FPA deadlines for all existing members and has been
pass the FASEA exam by CEO Dante De Gori CFP ® planners to sit and pass the willing to work with the
extending the deadline said the Government’s FASEA exam and meet the FPA and AFA jointly to
for 12 months to 1 January decision to announce its education standard. The deliver a better outcome
2022, while also extending intention to extend the proposed new deadlines for all financial planners
the deadline for meeting original deadline means will give existing planners and their clients.”
the FASEA education existing planners are no more time to study,
standard by 24 months to longer being unfairly ensuring that these reforms
1 January 2026. disadvantaged by delays are successful at raising the
from FASEA in rolling-out bar across the profession,”
In acknowledging the
its exam and its new Code De Gori said.
announcement made by
of Ethics.
the Assistant Minister
The FPA congratulates the following members who have been admitted as
CERTIFIED FINANCIAL PLANNER® PRACTITIONERS
NSW Nicholas Lloyd CFP®
ITL Financial Planning
VIC WA
David Cuff CFP® Belinda Slinger CFP® Alisha Bonomi CFP®
AMP Advice Bowen Tang CFP ®
Commonwealth Stewart Symonds and
Commonwealth Financial Planning Partners
Gareth Tomlinson CFP Financial Planning
Catalyst Advise Lynda Cross CFP® Isabella Sala CFP®
Quyen Quach CFP® LUCRF Super Commonwealth Bank
Bridge Private Wealth Kael Plummer CFP® of Australia
Shadforth Financial
Group
6 MONEY & LIFE | OCTOBER 2019
FOCUS
Introducing the Financial
Planning program at UTS
Business School. For those
who want to do more than
just tick a box.
Not all accredited financial planning programs are the same.
The UTS Business School postgraduate Financial Planning
program is designed for busy professionals who want to dive
a little deeper, learn a little more, and position themselves at
the vanguard of financial planning in Australia.
Options to suit your individual needs:
Graduate Certificate Graduate Diploma Master
4 subjects 8 subjects 12 subjects
March to June 2020 March to September 2020 March 2020 to June 2021
Subjects taught in block mode:
We know that as a finance professional you need to keep up with the demands of your career, so we
designed the Financial Planning program to be studied in block mode over two weekends, supported
by online components.
Learn with your fellow professionals:
Face-to-face interaction with highly motivated and engaged peers. Blend theory and practice by
workshopping case studies that mimic key aspects of the financial planning profession.
Applications to commence in 2020 are now open. Visit us online or
in person for more details.
uts.edu.au/mfp
UTS CRICOS PROVIDER CODE: 00099F. Details correct as at September 2019.
MONEY & LIFE | OCTOBER 2019 7
News. CONSUMERS SEE VALUE
IN FINANCIAL ADVICE
New research from ASIC “Although not all Australians research also indicated that
has revealed 41 per cent of need financial advice, it barriers, such as the costs
Australians intend to get is imperative that people of financial planning advice,
financial advice in the future, wanting advice when making remained an issue for the
which supports findings critical financial decisions are financial planning profession.
by Investment Trends in able to access high quality
“The FPA remains committed
September 2018 that showed advice and equally, feel
to working co-operatively
51 per cent of Australians have confident that the advice is in
with financial planners, the
an unmet advice need. their best interests.”
Government and the industry
However, while the findings FPA CEO Dante De Gori CFP ® more broadly, to support
in the ASIC report, Financial welcomed the findings, which the growth of our profession
advice: What consumers really confirmed previous research for the benefit of consumers,”
think (ASIC Report 627), that consumers who had he said.
indicated that 41 per cent of received advice had a more
Press added that financial
Australians would seek advice, positive view of the financial
planners have an important
the report also revealed that planning profession.
role to play in helping
many consumers wouldn’t
The research found that consumers improve their
seek advice
consumers generally financial position, saying there
due to factors
seek financial advice for was real opportunity for the
including high
investments (45 per cent), advice profession to rebuild
costs, industry
retirement income planning trust by reorienting itself and
mistrust and a
(37 per cent), superannuation putting consumers at the heart
perception that
(31 per cent), budgeting or of its services.
financial advice
cash flow management (22 per
was only for the
cent) and aged care planning
wealthy.
(18 per cent). ASIC Report 627 was based
Dante De Gori CFP®
“However, the good news for on an online survey of 2,545
Interestingly, the research also
the industry is that consumers participants, with the results
uncovered that consumer use
who had recently received weighted to ensure the results
of digital or automated advice
financial advice had more were representative of the
(often referred to as robo-
positive attitudes towards Australian population.
advice) remained low at
financial planners than those
1 per cent. To read the report in full,
who had not,” said ASIC
go to asic.gov.au
Commissioner, Danielle Press. However, De Gori
acknowledged that the ASIC
Aussies value advice Source: Financial advice:
What consumers really think
FAST FACTS
41%
(ASIC Report 627).
41%
CHOOSE A PLANNER
27%
BASED ON THEIR LEVEL
OF AUSSIES INTEND TO GET OF EXPERIENCE
FINANCIAL ADVICE IN THE FUTURE
OF AUSTRALIANS HAD
RECEIVED FINANCIAL
35%
THINK FINANCIAL ADVICE
ADVICE IN THE PAST IS TOO EXPENSIVE
8 MONEY & LIFE | OCTOBER 2019
GET READY FOR
New Horizons at
2019 CONGRESS
2018 CONGRESS
DELEGATES SAID…
‘New Horizons’ – the can engage in deeper
theme of the 2019 FPA conversations with like- “FPA Congress is our
Professionals Congress minded people around choice. So many great
– is about facing the what they are doing in
choices for sessions,
future and adapting to their practices to tackle
change collectively as a common challenges.
including personal
profession. Be sure to attend the and professional
Michelle Tate-Lovery CFP® Welcome Function, development. Great
With just over one
month to go, the 2019 will talk about finding
Women in Wealth to be around other
Breakfast and the
Congress is nearly here flow, and how to be professionals and
Future2 Celebrations
(29-29 November). your best self.
at the St Kilda Sea
learn from speakers
With careful planning
Delegates have a Baths, where we will be we would not
over 11 months and
choice of 24 workshops announcing the FPA normally be able
with a high number of
registrations to date,
to attend, covering four Award Winners. to access.”
different streams. Hear
this issue of Money & Congress is all
Life magazine includes
from subject matter
about gathering our
“Exposed to a range
an overview of the
experts on business
professional community of skills that can be
models, pricing,
Congress program. together to continue used every day to
compliance efficiency,
We have organised regulation, and
to have conversations help us all on our
that address the main own journeys.”
three sensational delivering best practice
challenges facing
keynotes – including advice though peer-to-
technological peer learning.
practitioners and “The keynote speakers
financial services
disrupters, a high were a highlight for
Making the most of businesses. Congress
calibre global
your visit to Melbourne, is about exploring me. I have left and
the latest trends, started using some
transforming your of the phrases they
thinking to improve the presented. They
way you do business,
were very relevant
and finding solutions to
help you better serve
to current industry
and advise clients. issues.”
Melbourne
Congress 2019 will be “With the changes
planner panel and packed with value and
you are invited to going on in our
an inspirational story relevance. It will be
from the first and only
start the conference
transformative. It will
practice and industry,
Australian athlete to
on Wednesday 27
help you stay focused. it was very relevant
November by joining
win both Summer and And it will foster and timely to our
either a master class for
Winter Paralympic
business owners (FPA
excitement by looking needs.”
medals – who will over the horizon to
Professional Practices)
explore shifting the
or paraplanners, before
see what the future of “... felt like more of a
mindset.
attending the opening
advice holds. sharing experience
We also have business keynote presentation. and recognising that,
leaders who will
Whilst the program as an industry, what
discuss how they have Michelle Tate-Lovery
balances learning and CFP® is Chair of the
we do is hard but
overcome obstacles
inspiration, there is also Congress Committee. giving hope that there
and repositioned
their businesses to
so much to gain by For more information, go is a light at the end
attending networking
excel, while a range of to fpacongress.com.au of the tunnel.”
events, where you
motivational speakers
MONEY & LIFE | OCTOBER 2019 9
FOCUS
OUT AND ABOUT
Brisbane
WEALTH and wellness
Brisbane
Gold Coast
FASEA exam trivia
WE LOOK FORWARD TO SEEING MEMBERS AT THEIR NEXT LOCAL CHAPTER EVENT.
FOR UPCOMING EVENTS, VISIT FPA.COM.AU/EVENTS
10 MONEY & LIFE | OCTOBER 2019FOCUS
The FPA Western Australia Chapter recently hosted the 2019 Women in Wealth networking event
series, featuring netball champion Caitlin Bassett. The Sydney Chapter conducted an Australian
Financial Complaints Authority breakfast with Shail Singh, the Brisbane Chapter held a wealth
and wellness networking event, while the Gold Coast Chapter enjoyed FASEA exam trivia.
Sydney
SYDNEY breakfast
Sydney
Western Australia
WOMEN in wealth
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LIFE | OCTOBER 2019
information.
11Insight. OPINION CORNER
TOWARDS NEW HORIZONS
Question: With ‘New Horizons’ as the theme of this year’s Congress,
what are the three things you are doing to prepare your business for
the changes and challenges ahead, and what do you expect to get out
of attending the 2019 Congress?
Peter Campbell CFP® 3. In speaking to our ongoing clients, we
are having open and frank discussions
Senior Financial Adviser,
Merideon Wealth Strategies around the costs that the business is
Licensee: Infocus Securities facing and our need to consider their
Australia fees moving forward. Surprisingly, it’s
a welcome conversation for clients, as
some have expressed concern that we
It’s a great question. It feels like we are doing
may not be around in the future! It’s an
many things to keep abreast of the latest
interesting perspective when clients
changes, however, the highlights for me are:
would prefer to pay more to support
1. We are starting to get a bit more the business.
strategic around the types of clients
I’m looking forward to Congress to reconnect
we deal with and why. The costs
with the great planners that I get to have
that are facing the profession, with
engaging discussions with every year. I’d like
increased compliance burdens and
to understand how we as a profession plan to
increased education requirements, are
handle those clients who are at risk of being
unfortunately starting to make financial
left behind.
planning advice inaccessible from a
commercial standpoint. There will be changes within the profession
for planners, which we are all mostly familiar
2. We are looking closely at the education
with, but the impact on low to middle-class
requirements and ensuring our planners
clients concerns me. Has anyone cracked
have a clear plan. We are looking at
the code on how to deliver at that level?
potential areas of specialisation between
If you think you’re on to something and are
planners to ensure we are still able to
attending Congress – track me down and let
offer a comprehensive service effectively
me buy you a coffee!
in the new environment.
Paul Garner CFP® more efficient. This includes rolling out and
implementing a digital strategy to help
Founder, Novo Wealth
attract more new clients to the business.
Licensee: Futuro Financial
Services By attending the 2019 Congress, I am
I’m looking to expecting to access new ideas, systems,
amalgamate/joint venture processes and inspiration to assist me
with other businesses in with moving onto the next phase of
my licensee group to amortise costs across professionalism and advancement within
more planners. I’m also looking to outsource the financial planning profession.
more non-client work to free up time to
spend with clients and prospects. I will also seek out ways that I can contribute
to the advancement of our profession.
In addition, I am investigating further
opportunities to automate and refine
internal processes, to help make my practice
12 MONEY & LIFE | OCTOBER 2019INSIGHT
Question: With ‘New Horizons’ as the theme of this year’s Congress,
what are the three things you are doing to prepare your business for
the changes and challenges ahead, and what do you expect to get out
of attending the 2019 Congress?
Todd Clifford AFP® judgement and skill. Our solutions need to enable
appropriate advice outcomes.
General Manager,
Viridian Select 3. Partnering: As the industry changes and
Licensee: Viridian Advisory institutions that have subsidised advice for a long
time move out, those of us who remain each have
a part to play to achieve a win-win for clients. Our
As the industry adapts to the new world, there are focus is on partnering with like-minded firms that
three things that we’re doing to address the changes are culture-led and believe in providing quality
and challenges: advice to clients.
1. Taking advantage of technology: We’re looking I’m looking forward to meeting and hearing from
at how we use digital technology to increase the other like-minded planners at the 2019 Congress and
accessibility of advice for clients and improve the seeing how together, we can make a change to our
efficiency of the production of advice. I believe profession for the better.
technology also has a role to play in making the
delivery of advice safer through supervision and
monitoring, as opposed to auditing. Data also
plays a critical role in running our business more
efficiently and providing reporting that allows us
to track and progress key activities and metrics.
2. Being fiduciary led: We’re focusing on fiduciary
led engagement, which enables us to take
clients on a journey by applying our professional
Genene Wilson sustainable for the business? Is it as simple as putting
the price up, demonstrating more value, creating
AFP®
better quality assets, or being laser-focused on
Founder and Principal Adviser,
Finesse Financial Advisers
attracting the ideal client?
Licensee: FYG Planners At Congress, I’d be interested to hear what the experts
say and discover what are other practices are doing.
The top three priorities for my practice are: growth, As I move towards a lifestyle-centred business, I also
pricing, and process. want to avoid the pitfalls of a start-up, by minimising
As I’m growing my business and team, I am interested wasted time, missed opportunities, and the struggle
to hear from the speakers and my colleagues at and grind that can go on for years.
Congress, while also contributing thought leadership So, I’m building processes that are more future-
myself, about the value and language of advice. focused and purpose-driven, that support the creation
It’s crucial to the success of the profession that we of value for clients and the practice, while helping me
create a dialogue that rebuilds trust with prospects to become ‘time rich’, so I don’t burn out.
and clients, enticing more Australians to seek advice. I expect to hear from the experts at Congress about
I want to know more about how to embed culture, how to nurture the mind and body, so that I can
ethics and my desired values into the practice, and preserve my energy and direct my time towards the
how to promote and reward positive behaviours, vital aspects of running my practice.
both for the benefit of clients and to improve
business outcomes.
When it comes to pricing our services, what do we
need to do differently in order to deliver quality,
compliant advice that is both profitable and
MONEY & LIFE | OCTOBER 2019 13INSIGHT
Question: With ‘New Horizons’ as the theme of this year’s Congress,
what are the three things you are doing to prepare your business for
the changes and challenges ahead, and what do you expect to get out
of attending the 2019 Congress?
Michael Abrahamsson documents and build out capabilities around cash-
flow, budgeting and portfolio analysis.
CFP®
Director and Financial Planner, We have been able to drill down and further invest
Flinders Wealth in training, education and professional development;
Licensee: Flinders Wealth balancing learning activities to advance soft, technical,
compliance and business skills.
As any business owner will testify, it takes time – and a
The Flinders Wealth team is excited to attend the 2019
certain maturity – to identify the ‘perfect’ client.
FPA Professionals Congress in Melbourne. We are
At Flinders Wealth, we have been able to create more looking forward to engaging with thought-provoking
value for our clients through a streamlined focus to speakers and learning new ideas to implement in
connect with people we know we can help. In addition our practice. Importantly, it provides us with a great
to increasing our value proposition, we have found it opportunity to keep an open dialogue with colleagues,
to drive efficiency in the business. We are prepared build new networks and share our experiences with
to say ‘no’ and refer clients outside our scope to other other planners.
financial planners.
Running a professional advice practice comes with
Understanding the ‘perfect’ client better allows a many challenges, but we find Congress, and the
professional advice practice to review and improve support network it attracts, to be especially enjoyable
its technology stack, while widening its peripheral and lucrative.
vision in the tireless pursuit of new and enhanced
solutions. It enables an opportunity to upgrade advice
Corey Wastle 2. Leveraging technology automation and
integration to make the delivery of the advice
CFP®
and experience more efficient and scalable.
Founder and Financial Coach,
Verse Wealth 3. Continually improving the quality of our advice
Licensee: Synchron and coaching, so we can add more value to the
lives of clients.
At Verse, we’re really focused on what we can control.
4. Focusing on our highest margin services and
The broader changes across the industry have had clients, so we can create the resources to invest
little impact on where our team’s time and energy further in the client experience.
are directed. We’re focused on building a world-class
To facilitate the above, we run a 90-day framework
client experience and helping clients live their best
called OKR, which stands for Objectives and Key
life. We believe that our future success and survival
Results. It’s a company-wide approach to goal
will be so closely correlated to the quality of the client
setting, prioritising and decision-making, made
experience, that we’re obsessive over it.
famous by Google.
As part of working towards building a world-class
This helps us become far more strategic about the
client experience, we are:
direction of the business and evolution of the client
1. Increasing our investment in technology to experience. The process decentralises innovation and
digitise more elements of the client experience, means that you can get your whole team working on
in particular, through their smartphone. combating the changes and challenges you may face
in the future.
Would you like to join our panel of FPA members willing
to voice their opinion on various topical issues?
Email editor@paperandspark.com.au to register your interest.
14 MONEY & LIFE | OCTOBER 2019LESS FOLLOWING THE PACK.
MORE CONVICTION.
INVESTMENTS AND SUPERANNUATIONInsight.
INSIGHT
GUEST CONTRIBUTOR
THE GLASS HALF FULL
Vincent Holland explains why certain firms will thrive, and others will fail, as the
profession heads into a new chapter.
world. Will your firm be a bridging course, but looking to retire anyway.
one of them? others will be required to Indeed, many ‘younger’
complete an entire FASEA planners might also be
DOOMED FOR approved degree. And of reconsidering their future
FAILURE course, all existing planners in the profession.
I consult with firms across will need to pass the
The imminent ban
the country – both in FASEA Financial Adviser
on grandfathered
regional areas and in examination before
commissions is also a
Vincent Holland capital cities – and the 1 January 2022.
matter causing significant
sentiment across the The result of this disruptive headaches for some
Do you lie awake at industry is overwhelmingly change is not just firms. They will now be
night worrying about negative. theoretical. It is very real. challenged to completely
your business? Are you
What do planners say According to the FPA’s rethink their service model,
concerned about what the
are their biggest areas own research, up to 6,000 or possibly face extinction.
future will look like in a post
of concern? The Royal planners could leave the
Royal Commission world? THE CASE FOR
Commission, and the industry, an exodus of
With a tidal wave of change relentless media almost a third of the entire OPTIMISM
reshaping the financial coverage it received, profession. Already, there However, it is my view that
services industry, the hasn’t exactly helped. is evidence that planner firms that are prepared
demands on planners have numbers are falling. to see out the current
But it’s the change to
never been greater. turbulence will profit
education standards that And it would be foolish
But despite all the gloom, to think that the exodus greatly in the future. It will
is perhaps causing the
there is a big opportunity will only be confined to not necessarily be easy,
most grief. At best, some
for a new breed of firms ‘veteran’ planners who but firms with a long-term
existing planners will only
to thrive in this changing might otherwise be outlook and the willingness
be required to complete
to adapt and embrace
16 MONEY & LIFE | OCTOBER 2019INSIGHT
change now, will be better Steve Jobs once said that soaring PI premiums and and their referral rate far
placed than ever. the best place to start is tighter regulatory scrutiny, higher. Among the firms we
with the client experience the challenge will indeed work with, this is certainly
Allow me to share just a
and to work backwards be great. Simply passing consistent with the results
few reasons why.
from there. Ask yourself these costs onto clients will the higher performing firms
First, the demand for high what your clients want not be sustainable. are able to achieve.
quality financial advice will from their financial planner.
Unfortunately, many firms WHERE TO
not disappear. If anything,
Market research shows are so buried in compliance
it is likely to increase. Yet FROM HERE?
that generating superior and administration that they
the supply of planners There are certainly
investment returns is not are unable to adequately
available to service this challenges that lie ahead.
the area that clients value focus on the areas that
demand is falling. In other It will not be for the faint-
most. Sure, sound portfolio matter most to their clients.
words, it is a market ripe hearted. Now is not the
management is a given.
for opportunity. With a typical holistic SOA time to rest on your laurels.
But clients are increasingly
comprising up to 50 pages But firms that are prepared
Our superannuation placing importance on their
or more, it’s easy to see to implement the necessary
savings pool, worth an bigger picture goals and
how much time gets lost technological and process
estimated $2.8 trillion objectives, and whether
on tasks that don’t seem to change now (and hit the
(at the end of the March they are on track to
add much value. study books again), will be
2019 quarter), is now the achieving them.
fourth highest in the world. On the other hand, firms well prepared to reap the
It is somewhat ironic that rewards in the future.
According to the Australian with great software,
in an age of information,
Bureau of Statistics, the systems and processes,
with endless data at their
total wealth of the average will successfully automate
fingertips, clients value Vincent Holland is a Principal
Australian has surged past these non-value adding
their human interactions of Forty-Seven and a
$1 million. tasks, freeing up time to
the most. Am I on track? co-founder of Plutosoft,
spend more of it in front of
The point is that Australia is Will I be okay? Can I a comprehensive financial
their clients.
a wealthy country, with an afford to fund a private planning software and
affluent middle class. And education for my children Ask a practice valuer practice management
as their financial affairs or grandchildren? what increases a firm’s program for financial
become more complicated, valuation the most. They planners. Forty-Seven is
These are questions that
so too will they have need will tell you that a firm part of the FPA Professional
cut to the heart of the
for financial advice. with great systems, a Practice program, which
planner/client relationship.
clearly segmented service recognises the highest calibre
Individuals will rely on the And no algorithm is going
offering, and the means financial planning practices
help of a trusted financial to adequately address
to deliver it efficiently and within the profession.
planner more, not less. The these challenges.
cost-effectively will attract Vincent can be contacted at:
stakes are just too great to
ALL SYSTEMS GO a premium valuation. vincent.holland@plutosoft.
leave it to chance.
com.au
But it’s easier said than All things being equal,
There is already a seismic
done. With a growing their profit will be greater,
shift taking place in which
compliance burden, their client retention better
the exodus of larger
institutions is leaving
a vacuum. Institutional
conflicts are rapidly
being eroded – restoring
trust and confidence in
the sector.
High quality financial
planning boutiques,
untainted by any conflicts,
and a greater focus on
strategy, not product, will
help to fill this void.
THE KEY TO SUCCESS
But what will it take to
succeed in this brave
new world?
MONEY & LIFE | OCTOBER 2019 17Insight.
In the SAME BOAT
The answers and solutions to problems are all around us, says Phil Billingham CFP®.
All it takes is for you to open up your mind to endless possibilities. Jayson Forrest reports.
If there is one message Phil Instead of reinventing the wheel, Phil Anthony (USA), Janet Hugo CFP ®
Billingham CFP ® would like to impart believes planners need to open up (South Africa) and Andrew Talbot
with practitioners from his 40 years their minds and talk to each other, CFP ® (Singapore). They will share
working in the U.K. financial services regardless of where they may be their insights about the challenges
industry, is that when it comes to located, about the changes and from their part of the world, and
change, you’re not alone. challenges facing the profession. how they are navigating change to
“The answers and solutions are out develop deeper and more sustainable
“It’s easy to be dismissive about
there. All we have to do is learn from business models.
the regulation and change here in
each other.”
Australia, compared to the rest of “Despite the regulatory and cultural
the world. But guess what? You’re Phil will be appearing on a panel differences around the world, the
not alone. We’re all facing the same discussion of global planning experts one common denominator are our
challenges, and we’re all in the at this year’s FPA Professionals clients,” Phil says. “Clients want to
same boat.” Congress, which includes Mitch protect their families, they want to
18 MONEY & LIFE | OCTOBER 2019build their businesses, they want approximately 25 per cent in the in theory, it could just as easily be
to grow their wealth and enjoy a three years following the new RDR bought at the supermarket checkout
comfortable retirement. The needs of rules in 2013, with the number of for five basis points,” Phil says.
our clients never change. So, talking advice firms also increasing by 8 per
“And whilst it’s true that a
to planners from other countries cent within the same period.
supermarket in the U.K. could in
allows you to discuss similar
However, the RDR didn’t come theory sell you term insurance
problems, share your experiences
without its challenges. According or a savings plan, what it can’t
and learn about other solutions to
to Phil, if there was one mistake do is understand the effect that
tackle problems.”
from the review that other countries may have on a person’s individual
RETAIL DISTRIBUTION REVIEW should avoid making, it is introducing situation. Only planners with a close
higher planner qualification relationship with their clients have the
When it comes to adapting to
requirements at the same time as expertise to understand the unique
change, Phil reckons he knows a
introducing changes to existing personal circumstances of their
thing or two, having steered his
advice business models. clients. That’s our value proposition.”
practice, Perceptive Planning,
through the rigours of the Retail However, seven years on, looking
Distribution Review (RDR) – a back at the RDR and all the changes
U.K. examination into the sale it brought to the U.K. market, Phil
of investment products to retail
People will readily pay says the reforms have actually been
customers by financial planners. liberating for planners, by freeing
fees to get good advice. them from a system that was heavily
Occurring at the same time as
reliant on selling product.
Australia’s Future of Financial In fact, post-RDR,
Advice (FoFA) reforms, the RDR was “Our advice business models had
launched by the Financial Services planners in the U.K. have to change to be more focused on
Authority (FSA) in 2006, with the solving our clients’ real problems,
new rules coming into force on on average doubled their rather than selling them a product,
1 January 2013. and that’s been a wonderful step for
These rules included: new
profitability through planners to take.”
training, accreditation and CPD
client retention models, LESSONS TO BE LEARNT
requirements for planners; a new
Phil is acutely mindful of the current
distinction between ‘restricted’
and ‘independent’ financial advice;
not client attraction changes facing the Australian
planning profession, including
a ban on receiving commissions
from product providers; and a
models. higher education and professional
requirements. But he believes there
requirement to disclose planner
charges to consumers up-front.
– Phil Billingham CFP® are similarities between what the
U.K. industry has recently been
“The aim of the RDR was to make through and what the Australian
the retail investment market in the market is currently working its
“This created the perfect storm,
UK work better for consumers, way through.
resulting in significantly higher
by raising the minimum level of
planner attrition in the U.K. than we He is confident there are many
planner qualifications, improving the
should have had,” he says. In fact, lessons Aussie planners can learn
transparency of charges and services,
Phil believes the convergence of from their British colleagues to help
and removing commission payments
these two changes accounted for them better adapt to the challenges
from product providers,” Phil says.
an additional reduction in adviser and change ahead for the profession.
“These changes have been a numbers, bringing the total attrition And top of the list is to ensure the
massive undertaking for the U.K. since 1988 to as much as 75 per cent “client always comes first”.
financial planning industry, but six of the U.K. adviser population.
“During the time of the RDR, there
years on, they have also helped
It’s a staggering number but he were dire predictions that planners
make us a stronger and more
qualifies this by adding that U.K. would become tied agents of the
trusted profession.”
advice models dependent on selling product manufacturers because it
It’s a view shared by University of products have suffered the most would be most cost-effective for
Northampton lecturer in financial from the RDR changes. them, but this turned out not to be
services, Gillian Cardy. Speaking at the case,” Phil says.
“It still makes no sense to me why it
a recent Netwealth U.K. Study Tour,
should cost 10 per cent upfront to
Gillian revealed that retail investment
sell somebody a product through
revenue in the U.K. increased by
a complicated sales process, when Continued overleaf
MONEY & LIFE | OCTOBER 2019 19INSIGHT
“At the time, about 90 per cent of believes what really matters is the
planners were already independent It’s easy to be dismissive trust of a planner’s client base.
and non-aligned. Clients liked the
“There is a lot of evidence that shows
fact their planner was independent about the regulation and that clients don’t trust financial
and were happy to pay fees for
services but they do trust their
unbiased advice that was in their best change here in Australia, financial planner. Trust is all about the
interest. They did not want to pay
brand of the individual.
fees to be sold a product.” compared to the rest
“So, instead of worrying about
Phil says at the core of ensuring that
the client comes first, is the need to
of the world. But guess rebuilding trust with the general
public, let’s first build and retain
“really get to know your client”.
what? You’re not alone. trust where it matters the most – at
“Clients want to work with somebody an individual client level. From there,
who understands them and their life We’re all facing the same we can build on that. Having a good
stages. For them, they’ve never sold a reputation with your clients has a
business before, they’ve never retired challenges, and we’re all ripple effect, which spreads out to
before or worked in three countries the wider community.”
before. But they want to work with in the same boat. Phil also believes a key to rebuilding
somebody who understands these
trust is for professional industry
things, and who has the expertise and – Phil Billingham CFP ®
bodies to be more proactive in
experience to help them with their life
retaking the moral and ethical high
stages,” he says.
ground by clearly differentiating
“The more planners we have who can themselves and what they stand for
offer that advice expertise, the better. accordingly,” he says. “People will from product providers.
Clients are after advice and guidance, readily pay fees to get good advice. “Financial planner and adviser
which means products really don’t Post-RDR, planners in the U.K. have professional bodies need to have a
matter; instead, they’re a commodity on average doubled their profitability clear ‘arm’s length’ relationship with
that can be sourced from anywhere.” through client retention models, not product providers. As part of their
Phil adds that at the heart of knowing client attraction models. Today’s duty of care, professional bodies
your client and focusing on their advice model is centred on high need to stand by their members and
needs is being able to articulate your service levels for clients, which clients consumers, which is fundamental to
client value proposition, which means are generally happy to pay for.” being a profession. And the FPA is
creating compelling propositions that a great example of that happening
IT’S ABOUT THE INDIVIDUAL
clients will pay for. in Australia.”
When it comes to rebuilding trust
“Be confident in the value you provide that has eroded over recent years In fact, since the RDR, Phil says there
to your clients by charging fees due to industry misconduct, Phil are more positives today in the U.K.
Your speaker Phil Billingham CFP ® has been Ethics and Practice Standards
a planner, author, trainer and Committee (U.K.); and member of
consultant since 1982. He is the Financial Planning Standards
passionate about bringing Board’s (FPSB) Regulatory
his considerable international Advisory Panel (2009-2014).
experience to support financial
Phil has worked with planners
planners around the world to cope
and regulators around the world,
with regulatory change.
including India, Canada, U.S., South
His past roles have included: Africa and Australia.
working in the U.S. with the
National Association of Financial He remains an active planner and
Advisers and Consumer Director at Perceptive Planning, an
Federation of America; former independent Chartered Financial
Director and Vice-Chairman of Planning firm he owns and runs
the Society of Financial Advisers with his wife. The U.K. business was
in the U.K.; former Director of nominated ‘Top 100’ status in 2014,
the Institute of Financial Planning 2015, 2016 and 2017 by Citywire.
(2007-2012) and Chair of the
20 MONEY & LIFE | OCTOBER 2019INSIGHT
media about the need for consumers Side-stepping the obvious, like the As for the future, well, this CFP ®
to seek independent advice, rather integration of technology and aligned practitioner remains very upbeat,
than buying a product directly services, such as accounting and particularly in respect of the current
that may be unsuitable for their law, into financial planning models, cohort of planners handing over
needs. He admits that as stressful Phil identifies a rapidly emerging the baton to the next generation
as it was to go through the RDR, trend in the U.K., which he believes of professionals. “We will see more
the reform changes have injected will eventually play out in Australia generational succession within the
greater confidence and trust in the – new product manufacture and profession, and probably from father
profession, which he believes will also distribution channels. to daughter. In the U.K., we are seeing
happen here. many more young women joining the
“Non-traditional financial services
profession, which is fantastic to see,”
“The changes ahead may seem players, like supermarkets, will
Phil says.
onerous, but the profession will increasingly move into financial
emerge much stronger and more services product manufacture “In fact, I’m very optimistic about
defined in the years ahead. You can’t and distribution. Why? Because the next 10 years. Right now is a
avoid change. It’s happening. So, consumers are increasingly looking great time to be a financial planner,
embrace it, learn from it and thrive.” to go elsewhere, other than banks, particularly if we take the time to
for their financial services products.” learn from each other. And the next
CHANGE IS A CONSTANT 10 years could be even better!”
As a part of this move away from
When chatting to Phil, it doesn’t take traditional product manufacturers,
you long to realise there’s one thing Phil believes products will become
he’s not short on, and that’s having Phil Billingham CFP® will be part of
simpler. However, he cautions for that
an opinion. So, when it comes to a panel discussion of global planning
to happen, the Government will need
looking into his crystal ball to see experts at the 2019 FPA Professionals
to provide greater certainty by stop
how the profession will change and Congress in Melbourne (27-29
tinkering with rules and regulation,
evolve over the next 10 years, he sees November). For more information on the
particularly in relation to areas
plenty of opportunities ahead. Congress program or to register your
like superannuation.
attendance, go to: fpacongress.com.au
In your clients’
moment of need,
we’re here.
In 2018 alone, we paid $1.4 billion in claims.
Because we’re here for your clients
when they need it.
MONEY & LIFE | OCTOBER 2019 21CONGRESS 2019
NEW HORIZONS:
WORKSHOP PROGRAM
This year’s Congress program features a range of inspiring speakers and industry professionals, who
will be presenting across 24 workshops in four dedicated workshop streams. Practitioners can earn up to
15 CPD hours by attending the Congress. The following is a preview of the sessions.
EVOLVE ENGAGE
Technical capability and critical thinking in financial
Engaging and developing your clients and staff.
planning specialty areas.
Organisational culture is critical to
performance and leaders play a vital role
FASEA exam Hear from a panel of planners who will
in creating cultures where people want
insights and share their study tips to help you feel
How culture leads to work and perform. Personal alignment
‘Return to Learn’: more confident and prepared going
performance is the key to lifting professional
Tips to help you into the FASEA exam and studying the
performance and achieving work/life
succeed Ethics Bridging Course.
balance will help you to optimise your
performance in work, life and play.
How will the FASEA Code of Ethics be In this session you will learn the core
interpreted and how does it compare to principles required to create and keep
How to build a
existing codes, such as those of the FPA teams of people in all areas of your life
Which code? support network
and TPB. This session will look at each of that uplift you, nurture you and ground
you can trust
these codes, how they differ, and how to you, without being a burden, obligation
meet the requirements of all three codes. or drain on them or you.
How do we improve the client
experience, reduce the cost of advice,
John Hale will discuss the impact of ethics
and ensure compliance management
Journey to an across context, culture and creativity.
and monitoring is real time and data Creating a
improved advice This session will equip planners with the
driven? This session will explore values-based firm
business know-how to conduct their own values-
lifting efficiency and examine a new
based audit of their business culture.
approach to data management to drive
business automation.
Mitch Anthony explains why money-
centred advice is self-limiting and guide
During this workshop you will experience you to develop a dialogue path that
Priceless advice: Building
how the language of advice can be will guarantee deeper connections
The meaning relationships that
reshaped, adapted and presented to and lasting relationships. Learn three
of value last and flourish
resonate with your clients. powerful Life-Centred Planning
dialogues that will demonstrate your
true value to clients.
Based on behavioural science, this
Gain insights across a range of SMSF
Keeping pace: workshop will give leaders practical
topics that will ensure you are able to Amplify your
The latest intel strategies to build assets of achievement
apply the latest thinking into strategies Impact
within SMSFs that help advance people and
for your SMSF clients.
performance, and accelerate success.
This session covers what practitioners
need to know when providing financial
Valuable lessons Ignite your creativity with the
advice to vulnerable people, like the Think outside
from vulnerable skills needed to solve complex
elderly or mentally challenged clients, the box
clients business challenges.
to help support them make better
financial decisions.
22 MONEY & LIFE | OCTOBER 2019GROW
These sessions will help improve the operational side of your practice.
This session will explore the pros and cons of
Licensing: Choose your different licensing options, including recent PROGRAM OVERVIEW
own adventure changes introduced by ASIC to enable planners
to determine the right option for them.
What will SOAs of the future look like? And how Time Wednesday 27 November
can you build one today? This session will draw
FOSOA: The future of SOAs on recent technology advancements that make 1:00pm- FPA Professional Practice
SOAs fit for purpose and deliver a superior advice 4:00pm Masterclass
experience for your clients.
1:00pm-
This session will feature a representative from Paraplanner Masterclass
When ASIC comes 4:00pm
ASIC, a planner and a lawyer, who will draw on
knocking: How to be
case study examples of what you can learn and 4:15pm-
prepared how you can approach an ASIC audit. Opening Keynote Session
5:55pm
This session will explore what advice businesses
The pricing evolution: Welcome reception and
What will profitable of the future will look like, and what planners 6:00pm
will need to do differently in order to attract and Expo opening
planning businesses
retain new clients, as well as ensure advice is
look like delivered profitably and sustainability. Time Thursday 28 November
Environment, social and governance (ESG) Women in Wealth breakfast /
7:30am
How to be a good principles have become an increasing focus Networking breakfast
for many advice businesses. This session will
corporate citizen
explore how to ensure the right structures and 9:00am Keynote Session
frameworks are in place for your advice business.
Workshop 1: Evolve / Engage /
This session will explore the most common 10:30am
complaints received by AFCA, including Grow / Inspire
In the interests of others
current trends and some of the lessons we can
learn, so that advice delivery may be improved. 11:30am Morning tea
Workshop 2: Evolve / Engage
INSPIRE 12:10pm
/ Grow / Inspire
Get motivated and nurture your mind and body.
1:10pm Lunch
The power of real This session examines what confidence really is
and how it can take us to a whole other level in Workshop 3: Evolve / Engage
confidence 2:10pm
terms of our performance and influence. / Grow / Inspire
This session examines how the brain works in
3:40pm Afternoon Tea
The neuroscience of stress relation to peak mental performance, problem
solving and decision-making. It will address how Workshop 4: Evolve / Engage
and decision-making
to regulate stress and emotions, and discuss the 4:10pm
/ Grow / Inspire
neuroscience of wellness.
7:00pm Future2 Celebration
Learn how to see the future before it gets here.
Identify lost or forgotten opportunities within Time Friday 29 November
Reinvent your business your business. Unlock the imagination and
ingenuity you need for innovation, and stop
reacting to change and start leading it. 7:30am Networking breakfast
Be guided through the ‘human durability’ model –
a powerful process for clarifying vision, planning, Workshop 5: Evolve / Engage
Human durability problem solving and decision-making. You will 9:00am
/ Grow / Inspire
gain a systematic approach for preparing yourself
to anticipate and manage challenges. Workshop 6: Evolve / Engage
10:15am
This workshop will show you: how we are not the / Grow / Inspire
sum total of what we do or what we’ve done; how
A roadmap for living life our trials and tribulations can be a gift, if we’re 11:15am Morning tea
prepared to learn from them; and how to live life
fully with meaning, authenticity and purpose.
12:30pm Closing Keynote Session
Andrew May explains that to strive is to make
great effort to achieve a goal, to embrace change 2:00pm Congress close
Strive: By embracing
and step out of your comfort zone. The ‘struggle’
change
to strive creates a sense of pride, building new * Program subject to changes. Times and events may vary
capabilities and creating new opportunities. slightly. Earn up to 15 CPD hours.
FOR MORE INFORMATION, VISIT FPACONGRESS.COM.AU
Program subject to changes. Times and events may vary slightly.
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