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MAY 2020 VOLUME 32 | ISSUE 04
PROFIT
WILL SAVE THE
PLANET.
Sustainable investing will only work if it delivers
good, long-term financial returns. And only those
companies that take sustainability seriously today
will be making money tomorrow.
For an expert view on sustainable investing, go to
www.understandingSI.com/AU
THE NUMBER 1 IN SUSTAINABLE INVESTING *
*Broadridge Market Analysis, 2019. Brand survey on independent asset managers amongst
>850 European fund selectors
Important information This document is distributed in Australia
by Robeco Hong Kong Limited (ARBN 156 512 659) (‘Robeco’)
which is exempt from the requirement to hold an Australian
financial services licence under the Corporations Act 2001
(Cth) pursuant to ASIC Class Order 03/1103. Robeco is
regulated by the Securities and Futures Commission under
the laws of Hong Kong and those laws may differ from
Australian laws.
MAY
MAY 2020
2020 VOLUME 3232|
VOLUME ISSUE 0404
| ISSUE
Courage
under change
GEORGIE SAVAGE AND THE REWARDS OF
A CAREER CHANGE
TRANSFER OF CLIENT FUTURE OF
WEALTH ENGAGEMENT ADVICE
GENERATIONAL CLIENT CAREER
WEALTH CONVERSATIONS SATISFACTION
TRANSFER ACROSS FOR YOUNG
GENERATIONS PLANNERS
CONTENTS MAY 2020
FOCUS INSIGHT
6 NEWS 18 COURAGE UNDER 24 GENERATIONAL
2020 CFP® consumer campaign. CHANGE CHANGE
Georgie Savage talks about the The next generation of
10 FPA READY trials, opportunities and rewards planners are seeking workplace
INDEX TOOL of her new career path. flexibility, mentoring, purpose
and fulfilment in what they are
Stay connected through a new
doing.
FPA online event initiative.
GROW LIFE LEARN
25 TRANSFER OF 36 THE GREAT 38 RAISING THE
WEALTH OUTDOORS RETIREMENT AGED
Family conversations about Human Nature Adventure Increases in age-based rules
the transfer of wealth from Therapy is bridging the gap present many opportunities
one generation to another is in mental health services for and pitfalls for clients, requiring
uncommon. But this need not young people by getting them planners to adjust the retirement
be the case. out of clinical environments and advice they give them, says
back into natural bush settings. Stuart Sheary CFP®.
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MONEY & LIFE MAGAZINE is the official publication of EDITORIAL TEAM
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© Financial Planning Association of Australia Limited. All material published in stated to be the views of the FPA. All advertising is sourced by Paper + Spark.
Money & Life is copyright. Reproduction in whole or part is prohibited without the The FPA does not endorse any products or services advertised in the magazine.
written permission of the FPA Chief Executive Officer. Applications to use material References or web links to products or services do not constitute endorsement.
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e-mail address. Material published in Money & Life is of a general nature only and supplied by Adam Hollingworth.
is not intended to be comprehensive nor does it constitute advice. The material
should not be relied on without seeking independent professional advice and CFP ®, CERTIFIED FINANCIAL PLANNER ® and CFP Logo® are certification marks
the Financial Planning Association of Australia Limited is not liable for any loss owned outside the US by the Financial Planning Standards Board Ltd (FPSB).
suffered in connection with the use of such material. Any views expressed in this Financial Planning Association of Australia Limited is the marks licensing authority
publication are those of the individual author, except where they are specifically for the CFP marks in Australia, through agreement with the FPSB.
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 a fragmented media landscape.
Because purposefully agile/great brands stand for something, while never standing still.
FOCUS
UNCERTAIN TIMES CALL
FOR CERTAIN ADVICE
The COVID-19 crisis has seen many requirement for advice on early LOOKING TO THE FUTURE
Australians find themselves in a access to super, and for all time
While we adjust to the new normal,
financial situation they have never critical advice, an extension from five
we are creating a new vision for our
experienced before. People are hungry to 30 days for giving a SOA.
profession over the next five years.
for professional financial advice.
The FPA strongly advocated for With your member input, we have
The critical role of a financial planner this reduction in regulatory burden mapped out the conversations,
has intensified. Recent CoreData on behalf of our members, as well advocacy and initiatives needed
research highlights a large majority as working cooperatively with for the continuing evolution of
of Australians are more concerned four other associations as part of financial planning.
about the financial impacts of the Regulatory Burden Taskforce.
I look forward to sharing the policy
COVID-19 than they are about its These are only a start and the FPA
vision and strategic priorities that
impacts on their health. continues to advocate on other
together we will focus on to ensure a
measures to support you during
As a result, most FPA members are better financial future for Australians.
these times.
flat out handling an increase in client These will be discussed at the FPA
queries and adjusting their business Together livestream events this
to run remotely. ADVERTISING CAMPAIGN month. Please register at fpa.com.au/
IS LIVE together
During these unprecedented times,
Funded by the marketing levy Keep safe and stay well.
FPA members are a calm, guiding
that CFP® professionals contribute | DANTE DE GORI CFP ®
hand to help so many navigate their
to annually, the FPA is currently CHIEF EXECUTIVE OFFICER
financial circumstances.
running digital advertising to ensure
Australians know they can turn to
ADVICE RELIEF MEASURES CFP professionals for financial advice,
We welcomed the temporary relief particularly during a time of crisis.
measures announced by the ASIC last
month to assist financial planners and The ads feature short messages
clients during the COVID-19 pandemic. reactive to news breaking around
COVID-19, to help Australians looking
These measures are helping to for financial stability in uncertain times.
improve timely, affordable advice
on early access to superannuation The ads encourage Australians to ‘Ask
FOLLOW D AN T E ON T WIT T ER
for Australians. Specifically, no SOA a CFP professional’ and directs them @D D EGOR I1 0
to FPA’s Match My Planner.
4
In your clients’
moment
Main title of need,
we’re here.
In 2019 alone, we paid $1.5 billion in claims.
ADV5354MLF
Because we’re here for your clients when
they need it.
aia.com.au
FOCUS
KEEPING THE 2020 CFP® CONSUMER CAMPAIGN
ON TARGET
In our last issue we shared an are often forced to re-evaluate and “At a time when many Australians
update on the new approach the reassess their situation, especially will be feeling more confused and
FPA is taking to our annual CFP® their financial one. Our campaign anxious than ever about their financial
consumer marketing campaign. will highlight the importance of future, the panel wanted the campaign
As well as working with a panel of talking to a CFP® professional for execution to convey a very clear
eight CFP® members to develop advice. message that there is trust in financial
campaign concepts and review planners and what a financial planner
outputs from our agency partners, can do for you,“ says Delma “Ikon came
we have involved the whole CFP® EXAMPLE MESSAGES back with four creative approaches
community by putting concepts to FOR THE NEW CFP® based on the original concept and
a vote to come up with our core CONSUMER CAMPAIGN theme. There were two really strong
campaign message. INCLUDE: ideas so we asked them to work on a
hybrid of these.”
Having a more robust, consultative
process has been even more • If I access $10K from my ‘Ask a CFP® professional’ is the
important in light of the COVID-19 super, how will it affect my repeated message of the new
pandemic and its impacts on our retirement? Ask a CFP® advertising campaign. each time
profession, clients and our entire professional preceded by a question that is likely
society. Any communication and • How long will my to be on the minds of Australian’s
advertising on behalf of the FPA money last? Ask a CFP® right now. “It’s a very timely message
and our members must be sensitive professional as there is so much uncertainty out
and relevant to what people are • Where is it safe to invest there for so many people.” says Delma.
experiencing. People are also right now? Ask a CFP® “It also gives us the ability to be agile
having to process vast amounts professional with the campaign as the situation
of information on a daily basis to changes and new questions arise. As
• How will my retirement be
keep on top of the latest economic the campaign will be running over
affected by COVID-19? Ask
and public health impacts and several months, this is absolutely key
a CFP® professional
Government responses to these. to making sure the message is still
• Can I afford to go strong enough to reach people in spite
So while the key concept for part-time? Ask a CFP® of the information overload they’re
the campaign remains the same, professional experiencing.”
the following theme was also
presented to our agency partner, The campaign runs from April With people spending so much time
Ikon Communications, to help until June 2020 at home due to social distancing
them develop creative ideas to restrictions, the campaign will not
address the most pressing financial be rolled out across transport and
concerns of our audience and shopping hubs as it has been in recent
highlight the critical role CFP® years. All distribution will be via digital
FPA board member Delma Newton
professionals are playing in this channels and radio advertising with
CFP® is also one of the eight panel
time of financial crisis. a call to action for consumers to
members who have been working to
visit a campaign webpage for more
Planning and responding in ensure the campaign is relevant to the
information and to connect with a CFP®
uncertain times: during times of needs of the CFP® community and the
professional via Match My Planner.
national and global hardship, people current COVID-19 situation as it unfolds.
The FPA congratulates the following members who have been admitted as
CERTIFIED FINANCIAL PLANNER® PRACTITIONERS
NSW SA
Khalil Daher CFP®
Nicolas Saravanja CFP ®
Kaden Emery CFP ®
James Bolingbroke CFP®
StatePlus StatePlus StatePlus Merlea Investments
6
Fidelity International is proud to be awarded the 2020 Morningstar Australia Fund Manager
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We believe it’s our team of 400 investment experts sharing insights in real time, from 18 locations
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For our clients that means better investment decisions and better insights to help navigate
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Learn more at fidelity.com.au/why-fidelity
Morningstar Awards 2020 ©. Morningstar, Inc. All Rights Reserved. Awarded to Fidelity International for 2020 Morningstar Australia Fund Manager of the Year.
This document is issued by FIL Responsible Entity (Australia) Limited ABN 33 148 059 009, AFSL No. 409340 (“Fidelity Australia”). Fidelity Australia is a member of the FIL Limited
group of companies commonly known as Fidelity International. This document has been prepared without taking into account your objectives, financial situation or needs.
You should consider these matters and seek independent financial advice before acting on the information. This document may not be reproduced or transmitted without the
prior written permission of Fidelity Australia. The issuer of Fidelity’s managed investment schemes is FIL Responsible Entity (Australia) Limited ABN 33 148 059 009. © 2020 FIL
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FOCUS
PROFESSIONAL YEAR SUPPORT
FOR PRACTICES AND LICENSEES
The Professional Year component responsibilities, the time and Professional Year tool users – both
of the new FASEA education commitment it takes to manage the supervisors and provisional planners
requirements is essential for giving Professional Year is a big ask. It can – will also have access to a range of
graduates the practical support they also require senior planners to place resources to support the mentoring
need to translate technical knowledge a greater focus on their capabilities and coaching aspect of this learning
into delivery of quality, compliant as coach and mentor for less experience. We’ve partnered with
financial advice. To support financial experienced colleagues. training provider Wilson Learning to
planning businesses in taking their role bring you these resources.
So far no commercial solutions
as mentors and training providers to
have been brought to market to The Professional Year tool is currently
a new level, the FPA have created the
support licensees with this new available in trial mode for partner
new Professional Year tool to simply
responsibility. To fill the gap, the and practice members, provided
and streamline this new process.
FPA is launching a workflow tool for all participants are FPA members.
The Professional Year has introduced creating and tracking a training plan Feedback from this first release will
a new layer of complexity for for Professional Year candidates. The help us refine the tool for potential
practices and licensees taking on platform offers licensee, supervisor, release to the wider financial planning
provisional planners. To ensure new and candidate views of each step community.
recruits have met all requirements and on the Professional Year pathway
are ready to begin their career as fully including the the FASEA exam,
qualified planners, senior planners structured and unstructured training
To find out more about the
and practice managers are now elements, and the resolution of ethical
Professional Year tool and get
tasked with creating and delivering dilemmas. A completion certificate
involved in the pilot phase, contact
comprehensive training plans. is created automatically when a
our FPA Education Team at
supervisor confirms all stages are
At a time when the whole profession education@fpa.com.au.
complete for each quarter.
is challenged by growing compliance
COVID-19: IMPACT ON INVESTOR SENTIMENT
While 2019 was a time for investors to be feeling cautious due to periods of market turbulence, the
COVID-19 pandemic has seen confidence plummet to a new low. According to the CoreData COVID-19
Investor Sentiment Tracker, the first week in April 2020 saw investor sentiment reach -45, only 5 points
off a maximum of -50.
0
-20
-40
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 1ST 2ND 3RD
WEEK WEEK WEEK
2016 2017 2018 2019 2020 APRIL
The score ranges from strongly pessimistic (-50) to strongly optimistic (+50) with 0 being a neautral reading
SOURCE: The CoreData COVID-19 Pulse Check Dashboard (link https://www.coredata.com.au/covid-19-pulse-
check#dashboard
8FOCUS Invest in stocks that thrive in the new economy. Divest from gambling, tobacco & fossil fuel companies. COMBINING ETHICS AND ACTIVE MANAGEMENT Access our award-winning Australian Equities expertise through an ethical SMA strategy. australianethical.com.au/sma This information has been prepared by Australian Ethical Investment Ltd (ABN 47 003 188 930, AFSL 229949) without taking into account any client’s objectives, financial situation or needs. No person should act on the information without first considering whether it is appropriate to their own objectives, financial situation and needs. Past performance is not a reliable indicator of future performance. You should obtain and consider the relevant Financial Services Guide and Product Disclosure Statement relating to a product before making a decision about whether to acquire that product. MAY 2020 9
FOCUS
STAY CONNECTED AT
FPA TOGETHER
The FPA has responded to these isolating times. To assist practitioners ● Launch of the new FPA five-year
challenging and unprecedented stay connected, it has launched a new strategic and policy plans for
times by postponing this year’s FPA online initiative - FPA Together. members; and
National Roadshow and the 2020 FPA ● Live Q&A.
Schedule to launch on 1 May, FPA
Professionals Congress, which was
Together is a series of free interactive Nine events will run during May and
scheduled for Adelaide in November.
online events, where members can early June, in addition to special
With Government restrictions in place hear about the latest developments webinars for FPA Professional Practices
during the current COVID-19 pandemic, impacting the profession, your career, and FPA Professional Partners. See box
the FPA made the difficult decision to your business and clients. below.
postpone these national events for the
Topics will include: FPA Together, with its virtual live event
calendar year and is currently working
on new dates for 2021. In addition, the ● How FPA members are responding series, will complement the FPA’s
Careers in Financial Planning event and adapting to the health and online discussion forum for members -
series, as well as Chapter events, are financial crisis emerging from FPA Community.
also on hold. COVID-19; FPA Together will be hosted on the
However, the FPA recognises the ● Resources and relief available to learning portal, FPA My CPD - available
importance of members to stay FPA members; through FPA Learn at learn.fpa.com.au
connected with the wider FPA ● The latest information on policy For more information, visit FPA My
community during these uncertain and and regulatory developments; CPD.
FPA TOGETHER EVENT SERIES FOR MAY
EXCLUSIVE FPA
WEBINAR: ONLINE EVENT
FOR FPA MEMBERS IN: START TIME
DATE
A Conversation with 1 May Regional Vic and Tas 12:00pm
Senator the Hon Jane Hume
8 May WA 12:00pm
Thursday 7 May 2020 | 12pm - 1pm
AEST
12 May FPA Professional Partners 10:30am
13 May FPA Professional Practices 1:00pm
The Assistant Minister for
Superannuation, Financial 15 May Regional QLD 12:00pm
Services and Financial
Technology will join FPA 18 May Brisbane 12:00pm
members at this special webinar
to discuss current issues in
financial planning, including 11 May Melbourne 12:00pm
the impact of COVID-19, the
Government’s response to 19 May SA and NT 12:00pm
the Financial Services Royal
Commission, and the future of
21 May Regional NSW and ACT 12:00pm
the financial planning profession.
Open to FPA members only, this
webinar is free. Register online via 22 May Sydney 12:00pm
FPA My CPD.
Second event for Sydney &
5 Jun 12:00pm
Melbourne
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INSIGHT
YOU SAY/
THEY SAY
How does the new generation think about financial planning? We asked both
financial planners and younger consumers what they think. The good news?
Both feel the other has a lot to offer.
YOU SAY
For financial planners, providing advice What sort of benefits do you think COVID-19 is having a big impact on
to the new generation requires the financial advice can bring young every aspect of our lives. How do you
ability to understand the different people? see this playing out for advice given
challenges and opportunities they to younger Australians?
are facing compared to previous
“
generations. 1. Increase their financial literacy
awareness and about cashflow and
“ Advisers can assist by stopping
younger Australians from making
How are the life goals of your next
budgeting. unwise decisions. For example,
generation of clients different to their
2. Understand how investment works. explaining to young people
parents?
3. Mentoring them that they can that withdrawing $10,000 from
“ Their biggest challenge is
affordability and job scarcity and
achieve their financial goals by
planning and putting steps in
superannuation tax-free could
potentially cost them ~$450,000 in less
being able to earn enough money to place.” super monies when they go to retire.
support their lifestyle. They are more (Based on returns of 10% pa for 40
concerned about climate change and
housing affordability and paying off
“ Financial advice helps young
people to know what they need to do
years.)”
their HECS.” to meet their retirement goals, and
their goals between now and then,
“ There are two trains of thought on
this one. The next generation could see
“ Our experience has been that
children of existing clients have
by explaining how much they need
to put away each year, and where
this as a perfect buying opportunity
and consider starting an overall wealth
different priorities due to the fact that those funds should be held based on strategy whilst investments markets are
their parents are financially secure. the goal. If they know that, then they under pressure or in decline - the other
For example, when their parents know how much is spare, and that option is that young Australians may
would have prioritised repaying the they have the luxury to spend on the put their head in the sand and think
mortgage, building superannuation, other things.” things are just too difficult.”
buying investment properties, etc, What are the other key issues that
their children are now in the fortunate
position that they do not have to
“ For instance, if they know that
directing $200 per week to super, impact advice given to younger
$200 per week to a higher interest people, i.e. property, careers, climate
prioritise making money/increasing change?
their net wealth. Instead, they have savings account and $200 per
the luxury to be able to prioritise
their children’s (the grandchildren’s)
week into an investment bond will
secure their retirement, pay for the “ Cashflow has to be the absolute key
issues for all Australians, not just young
education or better work/life balance holiday they want next year, and people.”
by only working four days per week fund their children’s secondary
rather than five (or six or seven that
their parents had to work!)”
school education in 10 years, they’re
in the strong position of knowing
“ Biggest issue is affordability of
advice. For us to do a thorough job
that everything else they earn can cost is $3k+ and that’s too much for
“ The main difference is the
timeframe. I find that next generation
be used as they see fit. Or that they
could potentially reduce hours to
young people.”
are focused on short term goals, while
their parents have longer term focus.”
spend more time with the family and “ The critical issue is how to best save
for their first home and how much
still achieve their goals.”
funds, if any, should be directed to
12INSIGHT
investing for retirement when they Will homes be something that young
have not yet purchased a home. people can afford? Why is there so
Savvier
Similarly, when a younger person much access to credit?
has worked hard to purchase their
home, the conversations are around “ It’s almost impossible to buy a
how spare cash flow (if any!!) should
be used when considering the
decent first home. University fees are
very high and credit is too easy. Our
desires exceed the supply.”
than given
credit for
combating needs of building for
retirement, having a savings buffer, What do younger generations have to
saving for future costs (education), gain from financial advice?
and planning for future changes in
income (reducing to one income for
a period of time). The conversation
“ Everything! Accountability to
a professional who can help guide
also extends to the need for them, financial education and Much is said about the younger
insurance, where best to pay for empowerment to make financial generation and their attitudes
those insurances, the sums insured, decisions, and professional advice towards money, and right now
waiting period, benefit period and to put them on track towards their how they think and feel about
definitions that are appropriate and goals and stop them from making big money is being tested more than
trying to convince them as young, financial mistakes.” ever before.
healthy, people that insurance is
needed.” “ It means the future’s in their hands
not the governments.”
However according to a report
by Alpha Beta, commissioned
by AfterPay last year, younger
THEY SAY “ Long term perspective. Smart
tips.”
generations are more financially
The next generation say they are savvy than they are often
facing different financial pressures What do you think younger portrayed.
than the generations before them, Australians are most concerned
and they want different things out about when it comes to their
of life. They also want the advice to finances?
make that financially happen.
How are the financial challenges
“ How to manage their finances as
best as possible, investing, buying 80 per cent of
that younger people face different property. It’s common for younger millennials have a
than previous generations? people to not know what they really budget, compared
80%
67%
want, and there’s pressure for them to 67 per cent of
“ We expect to live more lavish
lifestyles. Everyone around us is
to do life “textbook perfect”. For
example, they may be concerned
older generations
travelling, seeking experiences and they’re 30 and don’t own property as
broadcasting this on social media. they feel like they “should” whereas They are 37 per
The ‘fear of missing out’ (FOMO) that may not actually be a goal of 37%
cent less likely to
justifies so much short-term and theirs.” own a credit card
spontaneous expenditure.”
“ There is so much more to buy “ Housing affordability, investing
their funds ethically, making the right
75 per cent shop
and it can be done with a click of a around and check
investment decisions with their limited product reviews
finger 24/7 and you can pay later. funds.”
With so much access and promotion and prices carefully
of products online it is so tempting
to make purchases that aren’t
“ To be honest I really don’t think
that younger Australians think this way
before purchasing
necessary.” or plan ahead. They seem to be very
much here and now in their thinking.”
MAY 2020 13INSIGHT
A BRIGHT FUTURE FOR
FINANCIAL
PLANNING
An optimistic view of prospects for the profession as seen through the eyes
of 2019 FPA University Student of the Year finalist Porsha Papas, Associate
Adviser at Morgans Financial in Port Macquarie, NSW.
As a recent finalist in the 2019 FPA via strategic advice and an ongoing
University Student of the Year Award, relationship. This is exactly what I want
Porsha is an up-and-coming financial to do and I couldn’t be more excited
planning professional who has to be evolved and become a fully
consistently shown a commitment qualified financial planner in my current
to excellence during her five years in role as Associate Adviser at Morgans
the industry. She has been an FPA Financial Port Macquarie.
Mid North Coast Chapter Committee
What were the greatest challenges
Member since 2018 and was selected
and opportunities on your journey to
as a sponsored student to attend
becoming a planner?
FPA Congress in 2017 and 2018. She
is currently completing her final year Completing two of my university
of a Bachelor of Commerce majoring Finance units abroad in Europe and
in Financial Planning. India. Each unit would normally take
12 weeks but they were condensed
What motivated you to choose a to 2 weeks each. It was incredible to
career in financial planning? fast track my studies and learn from
I started working in the industry as an multiple industry professionals in
their home countries. The coursework
The ability to administration assistant in a regional
itself was intense as the unit is so
boutique financial planning office
cooperate with, when I returned from living in Italy. condensed, but the experience these
and learn from, Until then I had no idea what financial units has brought me is invaluable. The
ability to cooperate with, and learn
planning was and this is where my
others who have passion for the profession began. from others who have a completely
a completely I worked closely with a
different culture to you is such a vital
skill, especially in the financial planning
different culture to CERTIFIED FINANCIAL PLANNER industry.
you is such a vital PROFESSIONAL who was also a
Balancing study and work is
Chair of the FPA and heavily involved
skill.” in the industry. She has been an challenging, but motivating. A huge
incredible mentor and I enjoyed what number of planners are having this
| PORSHA PAPAS I was learning and being exposed to experience due to the new FASEA
everyday. So much so, that I decided education requirements. Having done
after just one year that I wanted to this for four years online I’ve come to
pursue a career as a financial planner. learn that maintaining your current
lifestyle, work and social life is a whole
A career in financial planning, for new ballgame. I studied in the evenings
me, combines my love of finance, after a day at the office, as lectures are
strategies and intricate knowledge, recorded by my University. Routine,
with helping and communicating discipline and motivation are key. A
with people. The conversation a good support network and passion for
planner has with their client involves what you are learning with the ability to
coaching, support and assurance see an outcome from your hard work is
and working together to achieve extremely helpful in staying on track.
their lifestyle goals and objectives
14INSIGHT
What were the best sources of What advice would you give to Why is now an interesting time to be
support for you along the way? your younger self on overcoming entering the profession?
challenges and making the most of
Finding another student and planner Financial planning is a profession
opportunities?
in a similar situation to talk to is so that can genuinely make a difference
important. I was really fortunate Meet as many planners as you can, ask to someone’s life. With the need
to have connected with a student them questions, hear their journeys, for reliable, ethical financial advice
who was completing the same discuss their styles of planning, their now greater than ever, many young
major very early on in my academic preferred areas of specialty and why people – especially women – are
career. It is an amazing support to they got into the industry. Getting choosing to build careers around a
have a likeminded person in similar yourself out there is the best way to profession that helps others make
circumstances to work with and make the most of opportunities, as this informed and rewarding financial life
discuss the course requirements. in turn is the way opportunities present decisions.
themselves to you. Make yourself known.
From a career point of view, I The profession is also becoming
would suggest that young planners As for any challenges you encounter, just more recognised with higher
who have their degree should talk through them with someone you standards and qualifications. There
seek support from a mentor and trust. You are not alone and don’t are many opportunities for career
experienced planner who you really have to take everything on yourself. growth for young planners due to the
look up to and see as a role model. There is an incredible support education changes and professional
You can both work together to grow, network, and everyone wants to see status transition that have occurred.
offering each other guidance. young planners succeed and will be During this transition period it is
more than happy to provide guidance, valuable for young planners to
advice and help. All you have to do is obtain mentorship and learn from
have the confidence to ask. experienced planners.
List a job.
Pick a paraplanner.
Deliver advice, faster.
TANNGO. YOUR ONLINE PARAPLANNING PLATFORM.
tanngo.com.au
MAY 2020 15INSIGHT
DELIVERING MORE
TO FPA MEMBERS
A timely reminder of the benefits of FPA membership that could help you
successfully navigate the most challenging economic environment ever.
By continuing to listen to the PEER SUPPORT Professional Year, create structured
needs of members, the FPA has work and learning plans. As well
Given the challenges associated
progressively rolled out tools, as recording and signing-off on
with the COVID-19 crisis, it’s
resources and services designed completed activities, this digital tool
an important time for financial
to enhance financial planning also produces quarterly completion
planners to support one another.
businesses, and improve overall certificates.
Our new FPA Community site
client engagement. With the
is an online forum for members Also new in 2020 is the integration
COVID-19 crisis heralding the most
to connect, collaborate and of CFP® certification with the
challenging economic environment
communicate in a trusted setting. Master of Financial Planning offered
ever, there have never been more
As many financial planners are by Deakin University. By helping
reasons to make the most of your
facing new questions and concerns students complete their CFP®
FPA membership.
from clients and grappling with certification units as they study
Given that COVID-19 has added to the challenges and opportunities towards their Masters, this new
the many complexities confronting of supporting clients remotely, study option delivers significant
financial planners, 2020 presents reaching out to peers can be a time and cost savings for financial
an opportunity to re-engage with positive step towards making planners looking to achieve their
the ever expanding array of FPA changes and coming up with new FASEA approved qualification and
services and resources. solutions. their CFP® designation.
We fully understand that helping FPA Community is also the new Other milestone services launched
clients through these troubled times destination for FPA members to in 2019 include Match My Planner,
means you’re likely to be busier provide their input and feedback which lets consumers search and
than ever. However, don’t forget to on policy issues affecting our interact with CFP professionals
draw on our services for support profession to contribute to before committing to an initial
and learning, at a time when they’re FPA’s advocacy and government meeting. This year FPA has received
likely to be needed most. relations. a 20 per cent increase in volume
to Match My Planner and the Find
In response to increased pressure
SERVICES RATED MOST associated with navigating the
a Planner directory, with a spike in
HIGHLY Australians looking to connect with
challenges of COVID-19 for clients,
a financial planner for advice during
While the FPA provides an extensive we have added new resources
times of crisis. Then there’s the new
range of resources, the category to our FPA Wellbeing service.
FPA member digital badge, which
valued most highly by members, There are fact sheets available
can be included on your website to
according to 2019 research, is on understanding health anxiety,
showcase your FPA membership to
Advocacy/Government and managing teams working remotely,
clients.
Regulator relations (33.1 per cent). preventing fatigue, and building
Last year alone, our members had resilience. Last year we introduced FPA My
direct input on 48 FPA submissions CPD, a new platform to give FPA
to government and we took part NEW MEMBER SERVICES members power over their CPD
in over 250 government and In response to the call by members requirements. It allows you to plan,
stakeholder meetings. We have for greater support with practice access and track your CPD – all from
a permanent member of staff management, and the rapidly the convenience of your desk. Right
based in Canberra overseeing our changing landscape for advice, now, you can find more than 300
government relations to ensure we will continue to explore new hours of FPA accredited CPD from
we are part of all the important opportunities going forward. We over 100 suppliers – including 120
conversations taking place around have already made significant free hours of CPD from webinars,
financial planning in order to updates to member services in courses, articles and quizzes.
represent member views. 2020.
Other key areas valued most highly These include a new digital tool
by members include CPD webinars that lets FPA Professional Practice
(30 per cent) and Policy guidance/ and Partner members, manage
tools (29.9 per cent). individuals completing their
16INSIGHT
MAKE THE MOST OF YOUR MEMBER SERVICES
ADVOCACY PRACTICE CONSUMER OUTREACH
A new secure online forum, MANAGEMENT Numerous initiatives to help
FPA Community means there’s To help members reduce consumers better engage with
no shortage of opportunities operational costs, manage change planners include, Match My
for members to have their and maximise efficiency, the Planner (see above), year-round
say on the latest policy and FPA offers insights into fintech advertising, Financial Planning
advocacy issues. During solutions and ideas to modernise Week, our annual national
2018/19, the FPA took part a client SOA. consumer awareness campaign,
in over 250 government and Money & Life, an online
and stakeholder relations To help members understand and destination dedicated to helping
meetings and sought input act on their obligations, members Australians improve their financial
from members to make 48 also receive updates and guides wellbeing, where you can access
submissions to government. on legislative changes and policy free consumer content for your
issues. own marketing activities.
EDUCATION COMMUNITY SUPPORT SERVICES
As well as the CFP® OUTREACH FPA tools support practice
Certification Program, the Opportunities to give back to management, business efficiencies,
FPA enables you to achieve the community include the FPA/ plus change management, while
your CPD on FPA My CPD and Cancer Council Pro Bono Service the FPA Wellbeing service helps
the FPA Return to Learn hub and Financial Planning Bushfire support members with their own
makes it easier for members to Pro Bono Program, and supporting health and wellbeing.
complete FASEA requirements at-risk young Australians through
and get prepped for the Future2.
Financial Adviser exam.
We’ve got your back
To survive the COVID-19 crisis in the best shape possible, we invite you to get to know the range of support tools and
services the FPA makes available to members.
Whether you’re looking to keep up with the latest news and policy announcements, manage your overall wellbeing
or look for the right education options, the FPA has you covered. We’re committed to providing members with the
necessary resources to foster business growth within a complex, fast-changing regulatory and economic environment.
MAY 2020 17INSIGHT Having the ability to provide clients with reassurance and clarity surrounding their financial future through education is a big reason behind my career change.” | GEORGIE SAVAGE
INSIGHT
COURAGE
IN THE FACE OF CHANGE
As a promising financial planner with Shadforth Financial Group,
Georgie Savage knows the profession is not for the faint-hearted. She talks to
Miriam DeLacy about the trials, opportunities and rewards of her new career. path.
A head for figures and a sense of “I feel very strongly about helping my quickly snapped up by the Shadforth
adventure have both served Georgie clients to ensure that this does not Financial Group practice, joining
Savage well in earning recognition happen to them. Having the ability their Launceston office where her
in the financial planning world. to provide clients with reassurance experience has been one of dedicated
After several years working as an and clarity surrounding their financial mentorship and support for putting
accountant, she quickly realised her future through education is a big her knowledge into practice.
chosen career wasn’t going to fulfil reason behind my career change. I
“I’m fortunate to be able to work for
her goal of making a difference in have a passion for helping people to
a company that has a strong team,
people’s lives. become informed and have a clear
mentoring culture and a desire to see
vision and understanding of their
“Ten years ago, I never would have all team members succeed. Shadforth
financial future.”
thought I would end up working within is full of many experienced financial
the financial advice industry,” says advisers who have given their time
Georgie. “I originally chose to go down to help build my skills and support
an accounting career pathway, but my professional development. I have
after spending seven years working in attended numerous client meetings
that field, I felt like it didn’t provide me with senior advisers, helping me
with the ability to fully assist clients to With the education not only with technical skills, but
help them achieve financial freedom.” also softer skills such as effective
“With accounting you are really
requirements lifting communication. One lesson this has
taught me is that we are not judged
looking at past events, and yes you can our status within by what we say, but by the questions
implement strategies to assist clients
we ask.”
for the next year or so, but I didn’t the community as a
feel that I was making a significant ENGAGING WITH THE
difference to their lives, which I am profession, younger
PLANNER COMMUNITY
passionate about doing.” advisers will have Georgie’s willingness to question and
A NEW KIND OF ADVENTURE the opportunity eagerness to learn from her peers
Following a career break which saw hasn’t gone unnoticed. In 2019 she
her take the opportunity to travel
to be a part of a was invited to join the FPA Emerging
Professionals Network, an opportunity
and explore the wider world, Georgie more professional, that has strengthened her belief in the
came to the realisation that a move
into financial planning would give her accountable and potential of the profession to improve
the lives of even more Australians.
that chance to play a central role in
building a better future for clients. valued industry.” “Last year I was fortunate enough
“During a period of extensive travel, to join FPAs Emerging Professional
I had the chance to reflect on what | GEORGIE SAVAGE Network after being chosen as the
was missing from my accounting Tasmanian representative,” says
career,” she says. “After consideration, Georgie. “Having the opportunity
I decided that a move into financial to come together with like-minded
advice would give me the best chance individuals, to discuss strategies to
to help people and make long-term With an undergraduate degree enhance the appeal of the financial
improvements to their lives.” in Business and Commerce from planning profession to the next wave
“I have seen firsthand the devastating the University of Tasmania already of students and planners has been
impact ill-informed financial decisions under her belt, Georgie completed an amazing experience. Being a part
can have on people’s lives,” she adds. her Graduate Diploma in Financial of a driven and passionate group of
Planning, Finance in 2018. She was people that will become the future of
MAY 2020 19INSIGHT
the planning industry, has been a very Australians as the most important shakeup stronger, more compliant
positive experience.” challenge in front of her and her and more trusted,” she said. “With
peers. “For me, the biggest challenge the education requirements lifting
READY TO EMBRACE for the financial advice profession is our status within the community as a
CHANGE to get the message out to the wider profession, younger financial planners
Georgie’s positive attitude towards community about our profession and will have the opportunity to be a part
change gives her strong sense of the value and benefits of good quality of a more professional, accountable
optimism when it comes to where advice,” she says. and valued industry.”
the financial planning profession is In addition to new standards of
heading. Not only does she see change education, Georgie points to digital
as expected and necessary, she also enhancements as another game
believes the ability to navigate change changer for financial advice. By
is central to the role financial planners embracing the opportunity to rethink
play in guiding clients through times of For me, the their approach on the basis of what
stress and uncertainty. technology is now making possible,
“Having the capability and willingness
biggest challenge financial planners can make important
to not only accept and adapt to for the financial progress in delivering advice in a more
engaging way.
change, but to also embrace it, are
key character traits required to be advice profession “Technology is now playing a more
successful in this profession,”
says Georgie.
is to get the important role more than ever with
clients becoming more ‘tech savvy’
“The longer I have been in the industry, message out and wanting information at their
fingertips,” says Georgie. “Embracing
the more I come to understand that
change is a constant in the finance
to the wider technology is key to providing our
world, and this is not just regarding community about clients with the best advice in an
efficient way. I feel very fortunate to
technological innovation.”
“Investment markets move constantly,
our industry and be part of a company that is investing
in the newest and best technologies
legislation is evolving, as are the rules the value and to assist me to become the best
and regulations governing advice. This adviser that I can be, and so I can
will continue to be the case. I may be benefits of good remain in the industry for a long time.”
at the end of my required studies but
that’s not to say additional changes
quality advice.” JOINING FORCES
and study requirements won’t come The many changes underway in
into effect later down the track.” | GEORGIE SAVAGE the profession itself, as well as the
widespread economic impact of the
WHAT THE FUTURE HOLDS COVID-19 pandemic, are bound to
As a newly qualified financial planner, However, she also feels that much of present younger financial planners
Georgie has already overcome the the work to restore the reputation like Georgie with both challenges and
challenge many financial planners of the financial planning profession opportunities. “Whilst the next wave of
still face in complying with the new is already well in hand. “As a whole, advisers may be viewed as lacking in
education standards. From her I believe the industry should come experience, they are technically strong
perspective as a relative newcomer, out of the Hayne Royal Commission – as through their recently completed
she sees engagement with unadvised
20INSIGHT
education and training,” says Georgie. ENDURING REWARDS
“But one of the strengths of being a Ultimately, what drives Georgie
younger adviser is that you can offer to keep striving to deliver better
longevity to the client relationship. The advice goes beyond technology, or
ability to stay in a client’s life for 10, 15, even team work. It’s the satisfaction
20 years is a strength that younger of making a genuine difference Having the
advisers can offer.” in people’s lives that drew her to
financial planning and continues to
capability and
However, Georgie is quick to point out
that embracing the future shouldn’t keep her motivated to learn, improve willingness to
mean disregarding valuable lessons and progress in her career.
from successful financial planning “Having the ability to provide
not only accept
strategies used in the past. “I have
seen the impact on the baby boomer
financial education and awareness to and adapt to
clients is hugely rewarding,” she says.
generation and the struggles they “I remember one of my first client change, but to
have had to work through,” says
Georgie. “Understanding their
meetings where I got to experience
the real value we add to people’s
also embrace it,
financial journey and applying these
learnings to the next generation and
lives. Through a cash flow modelling are key character
session, I was visually able to provide
beyond is valuable.” the clients (a couple) confirmation traits required to
that they were in a financial position
This is one of several reasons why she
sees the greatest potential for positive to retire – bringing them instant relief be successful in
outcomes for clients when advice can and comfort.” this profession.”
draw on the experience and insights “I derive a great deal of satisfaction
of financial planners in the early and from helping clients to navigate often | GEORGIE SAVAGE
later stages of their career. “A company complex and confusing financial
like Shadforth is great as it offers a matters. Building rapport with clients
good mix of both newer advisers and over time, and becoming a trusted
those that have been in the industry for confidant, is just one of the many
many years,” she says. “Having a team positive by-products of working in
approach to advice, where the client this profession.”
has access to both junior and senior
advisers is a huge strength of our firm.”
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21INSIGHT
GENERATIONAL
CHANGE
The next generation of planners are seeking workplace flexibility, mentoring,
purpose and fulfilment in what they are doing. Jayson Forrest talks to three
young CFP® professionals about how they view the future of advice.
Like so many uni students, Emily And as a Millennial, Emily is no
Lanciana CFP® was at a loss when she stranger to technology and is buoyed
completed her Bachelor of Commerce by the opportunities technology
degree. What to do now? It was a chance has for the profession. She believes
meeting with a careers coach and a the evolution of social media is
couple of brainstorming sessions later, encouraging more planners and
that sent Emily on the path of financial advice businesses to market their
planning, and she still says it was one of services and expertise.
the best decisions she ever made.
“There is a saturation of online
“We figured out all of the things I’m content, so we need to be more
good at and particularly passionate proactive in marketing ourselves as
about, which all pointed towards financial advice specialists,” she says. “We
planning,” Emily says. “So, I went back need to embrace technology and be
to uni and did an additional year where I adaptive to change.”
majored in financial planning.
“I’ve always been motivated to help REWARDING CAREER
Close to Emily’s heart is ‘pro bono’,
EMILY
people. It’s very rewarding to see clients
achieve their goals and share their and it’s something that Apt Wealth
journey with them. It’s the perfect career.” Partners takes seriously. The business
LANCIANA At the age of 28, Emily represents the
new breed of planners coming through
participates in the Cancer Council Pro
Bono program and it has signed up
CFP® the profession – tertiary educated,
to provide pro bono for the Bushfire
Recovery program.
mentored and highly motivated. She
views all the changes with higher “I love doing pro bono,” says Emily.
education requirements and professional “I do a lot of work with the Cancer
AGE: 28 standards as being “positive” for the Council Pro Bono program. It’s the
POSITION: profession, by making planners more most rewarding work that I’ve ever
accountable with the best interest duty. done. It’s a wonderful way of giving
FINANCIAL PLANNER
back and helping clients.”
PRACTICE: POSITIVE OUTLOOK As a young professional, Emily has
APT WEALTH PARTNERS
As a young professional working at workplace flexibility at the top of her
YEARS AS A FINANCIAL Apt Wealth Partners, Emily has a list and expects that from a career
PLANNER: SEVEN very positive outlook on the future of in financial planning. Thankfully, it’s
advice. She sees planners moving away something Apt Wealth Partners
from just numbers and investments, supports as a business.
to take on a more behavioural finance
“I work for a firm that is innovative,
aspect with their clients.
so when it comes to pro bono,
At Apt Wealth Partners, Emily technology adoption and workplace
predominantly works with Millennial flexibility, we have it,” she says.
clients, where she heads up a lower cost “Job fulfilment, technology and
offering for this generation. The offering workplace flexibility are all key areas
covers super, insurance and loans, but that Millennials are looking for with
at a reduced scale. She sees her role an employer. These are all areas that
with clients as that of a CFO, where she businesses need to address, if they’re
provides clients with the pros and cons going to be successful in attracting
of all of the options available, and then the next generation of planners.”
assist them in making the right decisions.
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