NEWS - 64 Media

BROKERS AND THE BEST INTEREST DUTY: IF IT AIN'T BROKE YOU'RE NOT ALLOWED TO FIX IT

Wed, 22 May 2013 00:00:00 -1000

The Future of Financial Advice (FoFA) guidelines have largely bypassed general insurance brokers, except for the Best Interests Duty, according to Charmian Holmes, Solicitor Director of The Fold Legal (the Fold).

“The Best Interests Duty means that from 1 July this year brokers will not be able to move clients to a new policy or insurer, if there is no proven benefit,” she said. “If there is no positive difference in the outcome for the client, or the changes place the client in a worse position, brokers must not recommend changing insurers or policies. In other words – if it ain’t broke, you’re not allowed to fix it.”

Ms Holmes said brokers have to get to the heart of what their client is trying to achieve when buying insurance and put it at the top of their list of priorities; beyond just explaining the available insurance products.

“Simply selling someone a policy isn’t going to cut it anymore,” she said. “Brokers must step into the client’s shoes and consider whether the client will be better off with the policy, only then can they recommend it.”

However, Ms Holmes said brokers should not find complying with the Best Interests Duty unduly onerous. “This is because most brokers take a common sense approach and focus on meeting the specific client’s needs,” she said. “Brokers should however revisit their processes and training to make sure their staff understand what they need to do to be compliant with the best interests duty.”

To test whether they are compliant, Ms Holmes suggested brokers ask themselves the following questions:

Will your advice help your client achieve their insurance goals and objectives?
Did you ‘test’ your assumptions about your client’s objectives with the client? Did you help the client prioritise those objectives when they could not all be addressed at the same time?
If the advice is to replace one policy with another – is there something about the new policy that outweighs what is offered by the current policy? If not, why recommend a change (other than on price)?
What position will your client be in if they follow your advice – better off, no different or worse? If the answer is ‘no different’ or ‘worse’, don’t change policies.

The Fold recently re-launched their Broker Manual. This is the Gold Book re-vamped! Designed to help brokers manage their legal obligations and prepare for the Best Interests Duty. For more information visit http://www.thefoldlegal.com.au/general-insurance-brokers

AFA LAUNCHES THE INSPIRE EXPERIENCE

Fri, 17 May 2013 00:00:00 -1000

The Association of Financial Advisers (AFA) is hosting three high profile events in June this year to formally launch the ‘Inspire’ initiative to help females find their voice and encourage them to be pro-active in seeking support within the financial services industry.

AFA Inspire Chair, Deborah Kent, said the response to the announcement in March this year by the AFA of the formation of the Inspire initiative has proved that women in the industry are actively seeking support networks outside the workplace. “In the first two weeks, the AFA Inspire LinkedIn group had over 200 members – so it’s clear the initiative is resonating within our industry,” she said.

AFA Inspire will enable women to access tools to help them succeed no matter what stage their development and career is at, or what area of financial advice they work in.

Ms Kent said the challenges women face in the industry extend beyond the workplace and the AFA Inspire program will help them network with other women, even clients, who may be facing the same obstacles. “Women have different needs to men,” she said. “Creating a community where the needs of women are met is most important and the AFA has done this through the creation of the AFA Inspire initiative.”

Ms Kent also said that from a client perspective, women are making more decisions on behalf of families and there are many single women looking for financial advice who may find it difficult to take the first step toward receiving advice. “Encouraging solutions for these clients is also a key part of the AFA Inspire initiative."

The launch event will provide an opportunity to celebrate women and help them whatever their role – adviser, para planner, support staff or BDM – to find their voice within the financial services industry.

“The AFA Inspire launch is open to anyone with a shared interest in addressing these issues, wanting to be part of a community - whether or not they are AFA members,” Ms Kent said. "Attending the AFA Inspire launch event will allow individuals to be a part of this initiative from the start; to share the sense of achievement that comes from building a community and from nurturing new solutions to an old problem.”

Ms Kent said she hopes the launch event, and the connections women make through it, will give them the tools and attitudes they need to overcome challenges and devise strategies to enable them to better cope with demanding workloads and personal commitments.

The AFA Inspire launch will be held in Brisbane, than Melbourne and Sydney from 17-19 June. Seats are limited, to book your place, please visit www.afa.asn.au/events.

NO SUPER SURPRISES IN BUDGET

Thu, 16 May 2013 00:00:00 -1000

The AFA welcomes the fact that the Government has not sought to make any further changes to superannuation in last night’s Federal Budget (the Budget).

Phil Anderson, AFA Chief Operating Officer, said the AFA is pleased that there were no detrimental changes to the superannuation system beyond those previously announced on 5 April this year.

“It is important for consumer confidence that short term changes are avoided and we focus on the long term success of our superannuation system in order to encourage greater self reliance in retirement,” he said. “We are pleased to see an increase to the contributions cap for older Australians and the changes to excess concessional contributions,” he said.

Mr Anderson said the increase in the concessional contribution cap to $35,000, which is expected to be implemented from 1 July this year for those 60 and over, and from 1 July 2014 for those over 50, will better allow for older Australians to prepare for retirement, and pave the way towards a more stable superannuation system.

The pilot program that will allow senior Australians to downsize their family home and put the proceeds into a special account, exempt from the pension means testing, has been welcomed by the AFA, subject to further details and consultation.

At the family end of the spectrum, Mr Anderson said financial advisers will need to work with clients, to consider the implications of the changes to family tax benefits and the other budget measures.

“For the average Australian family, the reduction of family assistance benefits and the removal of promised tax cuts means the average family budget will be tighter,” he said. “What is clear from this Budget is that the fiscal position for Australia is challenging and further pressure on the Federal Budget is likely in the near future. Accordingly, access to financial advice will be increasingly important for all Australians.”

AFA MENTORING PROGRAM: DEVELOPING QUALITY ADVISERS TO DELIVER QUALITY ADVICE

Thu, 16 May 2013 00:00:00 -1000

The Association of Financial Advisers (AFA) has enhanced its long-running mentoring program and will roll it out across the country later this month in a series of events designed to encourage financial advisers to work together to educate and encourage each other.

Fraser Jack, AFA National GenXt Chair, said the AFA’s revitalised mentoring program will not only accelerate the professional journey of GenXt advisers, but will also reinvigorate and motivate more experienced advisers.

“The main aim of the program is to bridge the gap between GenXt and more experienced advisers, in order to encourage all advisers to share ways in which they can provide quality advice to their clients,” Mr Jack said. “Advisers are currently providing financial advice to two in 10 Australians – this simply isn’t enough. If we want to see more Australians accessing advice, we have to work together to come up with really great strategies and highly relevant approaches.”

Mr Jack said AFA advisers have always been very collegial and the AFA Mentoring Program (the Program) offers them an excellent forum for working together. “It offers an opportunity to collaborate to ensure that the advice we give our clients is of the highest quality,” he said.

The Program consists of three different approaches: face-to-face mentoring, webinars, and white papers on topics GenXt advisers have indicated are important to their development.

“We expect topics to include things like how to generate referrals, how to market to a target client segment, how to handle objections and how to develop centre of influence relationships,” Mr Jack said.

When AFA CEO Brad Fox was an adviser, he mentored Matt Hale who was AFA’s Rising Star Winner in 2012. Mr Hale is now a mentor himself and hopes that by sharing his experiences, he will be able to guide GenXt advisers to success.

“I hope the program will help extend the AFA’s strong collaborative culture to GenXt members and encourage them to become actively involved in their association,” he said. “The Program has been crucial to my personal development and I now regard my relationship with Brad as a friendship.”

His tip for fellow GenXt advisers is to find a mentor they really connect with.

“You get the most out of a mentoring relationship over a long period of time when you really connect with someone,” he said. “Wherever there are good quality people involved, results will speak for themselves.”

The AFA's Mentoring Program will launch in cities across Australia on 30 May. Visit www.afa.asn.au/events to secure your place.

FUNERAL ARRANGEMENTS FOR SYNCHRON'S PAUL RIEGELHUTH

Fri, 10 May 2013 00:00:00 -1000

Details of Paul Rigelhuth's funeral on Friday 10 May appear below.

Synchron is supplying a shuttle service from Moonee Valley Racecourse to Ascot House from 10:15am to 2:30pm transferring all guests with the last transfers from Ascot House between 2.30pm – 3pm for those who wish to stay for the Wake.

Buses will have a Synchron sign displayed.

Parking at Ascot House will be reserved strictly for family.

Synchron would like to thank those who have sent flowers and have passed on their condolences to our office and the family.

64 MEDIA MOURNS THE LOSS OF SYNCHRON'S PAUL RIEGELHUTH

Fri, 03 May 2013 00:00:00 -1000

I am personally devastated to learn of the accidental death of Synchron director, Paul Riegelhuth. Synchron has been a 64 Media client for many years and we have come to regard Paul and the Synchron team as part of our 64 Media family.

The Association of Financial Advisers (AFA) President, Michael Nowak, has just released a statement noting Paul's huge contribution to the AFA and the advice industry. Paul was an AFA Life Member, Victorian Director of the AFA Investment Fund, National Conference Chairman, former AFA Board Member and National Vice President. Michael is correct in saying he will be greatly missed by many in the AFA Family.

The AFA will advise funeral arrangements when they become available and I will also distribute this information via our website.

At 64 Media, we remember Paul as an enthusiastic member of the Synchron team and we know his loss is being profoundly felt by his fellow directors, Don Trapnell and John Prossor, Independent Synchron Chair, Michael Harrison and the entire Synchron team. We extend to them all our sympathies.

We also extend our deepest sympathies to Paul's daughter, well-known and respected Synchron financial adviser, Sarah Riegelhuth and the Riegelhuth famiily.

JULIE BENNETT

MEDIA MOVEMENTS

Thu, 02 May 2013 00:00:00 -1000

The financial services media was an exciting place to be in April - a fabulous launch party, migration between camps, aquisition of international talent and a well known face back on board.

Benchmark Media

Benchmark Media officially introduced their suite of publications last month with a launch party at the Zeta Bar in Sydney. The launch attracted many well-known industry names (64 Media was there!) all supporting the new publishing venture.

Benchmark Media launched The Insto Report, edited by Wouter Klijn in late March joining Financial Observer edited by Kate Kachor and Self Managed Super edited by owner/publisher Darin Tyson-Chan. Krystine Lumanta reports across the suite of publications.

Sterling Publishing

Following the successful launch of the ifa website in February, Sterling Publishing has recruited former Money Management journalist, Tim Stewart.

Sterling Publishing has also announced the addition of former BBC reporter Owen Holdaway to the IFA/Investor Daily team as well as Katarina Taurian, previously a sub-editor and writer for Express Media Group.

Phillip Tarrant, managing director of Sterling Publishing, said Sterling has significantly strengthened its suite of wealth products with these appointments. “Sterling now has the largest editorial resources dedicated to covering the financial services sector,” he said. “The appointment of new team members follows the launch of ifa online, which is securing upwards of 20,000 unique visits per month, and the recent re-launch of InvestorDaily, the product of influence for financial services professionals.”

“A very smooth transition,” says one particularly smooth Sterling insider.

Conexus Financial

Conexus Financial has recruited David Rowley from the UK to edit Investment Magazine. David was formerly the editor of Pensions Week (Financial Times) in the UK and has been a regular contributor to FTFM, the FT’s fund management section. David has also written several non-fiction books, the last of which is ‘All Together Now, the ABC of the Beatles songs and albums’. We wish him well working in the Australian financial services arena.

Cirrus Media

Cirrus Media, the new home for Money Management and its suite of financial services titles, sees a return to the fold for Jason Spits as Senior Journalist. Jason has relocated to Sydney from Melbourne where he has spent the past six years freelancing in financial services while furthering his studies. Jason is a former media and comms manager for the Financial Planning Association (FPA), a former Managing Editor of Financial Standard and spent five years, with three as Editor, at Money Management (1999-2004).

Key Media

Hannah Temple has been appointed Videographer at Key Media working across Wealth Professional, Australian Broker, Human Capital and Insurance Business replacing Donna Sawyer. Stephanie Zillman, multimedia journalist, is working across the same publications, also as a web journalist on Human Capital magazine.

AFA CONFERENCE: FIRMLY FOCUSED ON CONSUMERS

Tue, 30 Apr 2013 00:00:00 -1000

In line with its Age of Consumers 2013 focus, the Association of Financial Advisers (AFA) is currently preparing a consumer-centric program for its national Conference in October.

AFA CEO, Brad Fox, said the one constant theme underlying the significant regulatory change the industry has confronted over the last few years, has been a focus on consumers and acting in their best interests. “The objectives of the conference are to build a bridge between the pre-FoFA world and a new way of operating in the post-FoFA world,” he said.

Steve Crawford, Chair of the AFA Conference Committee, said the conference will provide advisers with the tailored information they require in order to meet the needs of increasingly savvy consumers, at each stage of their lives.

“This year we are framing the conference from a fresh perspective,” Mr Crawford said. “In the past, conference stream sessions have been designed around providing education to advisers based upon particular types of advice or products. This year, we are focusing conference streams on the types of consumers and their specific needs and then providing education to advisers that will help them meet those needs. It’s a subtle, but very important distinction.”

The conference program will therefore feature four client-centric streams - Generations X and Y, pre-retirees, retirees and small business owners. As in previous years, there will also be a stream specifically for licensees.

“Our speakers this year will tailor their presentations to address how advisers can service the unique sets of goals, objectives and challenges of each stream,” Mr Crawford said. “It is primarily about placing the client at the centre of the discussion.”

Each stream will run sessions around traditional topics such as investment and insurance strategy but these will be targeted to each demographic.

“This means advisers will know that if they are going to a Generations X and Y investment session, for example, there is no risk they will have to listen to strategies built around retirement products,” Mr Crawford said. “Presenters will take a deep view of the demographic and construct the presentation around the specific set of goals, objectives and challenges that are unique to that client segment.”

The conference will also feature a best practice component. “That’s about having the AFA’s best and brightest advisers, those who have a history in leading the industry in a particular demographic, get up and talk about how they attract, retain and service that demographic,” Mr Crawford said.

Mr Fox said the AFA’s approach this year is all about being true to label.

“We are making sure that the content of everything we put on the table, whether it’s a main plenary session, workshop, breakfast or stream break out, is helping advisers understand their target market and what it takes to provide that market with an outstanding advice experience, including appropriate strategy,” he said.

Mr Fox said the AFA is committed to working hard to retain the AFA Conference’s reputation as the leading Australian conference for financial advice professionals by successfully combining a cutting edge education programme with the unique sense of community enjoyed at all AFA conferences.

“One of the most consistent pieces of feedback we have had about AFA conferences is that they offer delegates a powerful community experience,” he said. “In the post-FOFA environment this sense of community is more important than it has ever been and with just 180 days to go, advisers should be reserving the dates in their calendars now.”

The AFA expects good growth on the 800 plus delegates and 80 exhibitors who attended the 2012 conference. The 2013 AFA national Conference will be held at Royal Pines Resort on the Gold Coast from 12-15 October.

SYNCHRON MEETS TARGET IN WA

Wed, 24 Apr 2013 00:00:00 -1000

Synchron has more than met its target to double its adviser presence in Western Australia in only six months.

As at 31 March 2013, the non-aligned licensee had increased the number of advisers operating under its banner in the west from 14 individual authorised representatives to 31.

Synchron Director, Don Trapnell attributed the group’s success to Synchron’s focus and commitment to the region and to the hard work of WA State Manager, Bernie Fernandes.

“Bernie’s appointment has been instrumental to our growth in Western Australia,” Mr Trapnell said. “He has helped Synchron build profile in the state and worked with us to develop our services in the region.”

Synchron is looking to replicate its success in Queensland, where it now has 85 individual authorised representatives.

Mr Trapnell said Synchron put considerable resources behind its expansion in the west. “We engaged with every industry partner we have in WA - BDMs, state managers and advisers - and asked them for their opinion of Synchron,” he said. “Their responses proved that there was a world of difference between how Synchron was perceived in the west and how we are perceived in the east. We realised we needed to align those perceptions to best reflect who we are and how we engage with our authorised reps.”

Mr Trapnell said that with the help of industry partners and Mr Fernandes, the perception of Synchron in the west has changed and the increase in adviser numbers is a reflection of that.

“We have a reputation in the east for valuing relationships,” Mr Trapnell said. “We work hard to make sure our advisers are gaining the most from the relationships they have with us and we actively encourage them to tell us what we need to do to improve. This reputation is spreading to the west and the number of advisers now wanting to join us means the message is resonating with advisers in the region.”

Synchron also believes in making transitioning into and out of the group as simple as possible for advisers.

“We coordinate both ends of the adviser life-cycle, helping older advisers transition out of Synchron when they are ready to retire and helping up-and-coming advisers transition in,” he said. “We believe that making transitions simple for advisers was a key factor in our success in WA. It’s win/win for all involved.”

Mr Trapnell said the theme of Synchron’s NextGen conference, which will take place in August at Varsity Lakes in Queensland, is the value of relationships.

“Our success in WA is a powerful demonstration of how very valuable relationships are to success in financial services,” he said. “At NextGen this year we will be helping our younger advisers develop skills that strengthen and enhance relationships.”

At the NextGen conference, Synchron Independent Chair Michael Harrison will be conducting a skills workshop focusing on understanding client needs from a young adviser's viewpoint.

MY DEALER GROUP AND TEPANA FINANCIAL INDICES LAUNCH STRATEGIC PLANNING TOOLS FOR LICENSEES

Wed, 10 Apr 2013 00:00:00 -1000

My Dealer Group and Tepana Financial Indices (TFI) are delighted to announce a partnership and the launch of a suite of three indices that provide licensees with quantitative analysis on how well advisers rate them.

The indices include:

Adviser Loyalty Index (Net Promoter Score (NPS) measuring loyalty and adviser retention)
Licensee SQI (Service Quality Index quantifying satisfaction and importance of various service elements together with reasons for any dissatisfaction)
Adviser API (Adviser Professionalism Index: Education and Training)

Together, the indices offer licensees critical quantitative measurement on how advisers rate them in relation to their competitors, their perceived strengths and weaknesses and their opportunities for business growth.

“Since the launch of My Dealer Group by Pinnacle Practice a year ago, we have gained considerable insight into adviser satisfaction levels and into what factors differentiate better licensees from the pack,” says Pinnacle Practice Director, Anne Fuchs. “The partnership with Tepana Financial Indices means we can quantify information and also offer NPS and SQI analysis to licensees.”

The suite of indices is derived from The Adviser Satisfaction Survey, the market leader in measuring licensee service satisfaction levels developed by TFI in 2003. TFI analyses the factors that attract and retain quality advisers and drive loyalty.

“We believe this research is critical to the survival of licensees in a post-FoFA environment,” Ms Fuchs said. “Dealer groups benefit from this kind of analysis because they can see what advisers value and adjust their service offerings to meet the market.”

Principal of TFI, Kathleen Tepana, said an NPS diagnosis can be likened to a blood pressure analysis, and is an indicator of business health, while the service quality index reveals the underlying drivers of adviser satisfaction and reasons for likely growth so that a licensee can implement a plan to remain relevant and rectify any problem.

“The financial indices offer licensees two levels of raw data in the form of quantum analysis and dealer group scores, the latter of which is left to the licensee to interpret,” Ms Tepana said. “Above this is a more comprehensive service that interprets the data, offers insights into why licensees may be underperforming, and provides recommendations for strategic planning.”

The Net Promoter Score and Service Quality Index reports identify what matters to advisers, as well as what the dealer group is good at and how that differs from their key competitors.

“It is also a powerful quantitative adjunct to metrics, such as funds under advice per adviser, to measure and monitor the growth and ‘stickiness’ of adviser relationships,” Ms Tepana said. “Those dealer groups with strong differentiated stories and offers that resonate with advisers and their clients are the ones that will survive and prosper now and in the future.”