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FEBRUARY 2020 VOLU ME 32 | ISSUE 01
The magazine for FINANCIAL PLANNING PROFESSIONALS
Sharing
the
Message
ANDREW DUNBAR CFP®
AND SPREADING THE
GOOD WORD ON ADVICE
EDUCATION AND THE PROFESSION: WHY THE OPPORTUNITY IS NOW
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2
FEB 2020
CONTENTS
FOCUS INSIGHT
6 NEWS 14 3 REASONS TO BE 22 TAKING EDUCATION
Latest news updates. CONFIDENT IN 2020 TO THE NEXT LEVEL
Dante De Gori CFP® explains In an industry first, Deakin
10 NEW HORIZONS how change is providing University is offering the CFP®
A visual snapshot of the 2019 planners with a major designation as part of its
FPA Professionals Congress. opportunity to advance in their FASEA approved Master of
professional standing. Financial Planning in 2020.
GROW LIFE LEARN
30 EMBRACE 36 ARE YOU READY 38 FIRST HOME LOAN
DISRUPTION TO THRIVE? DEPOSIT SCHEME
To manage change and avoid At a time of consolidation, Rob Lavery explains
disruption, step outside your innovation and transformation, the intricacies of the
current role and imagine Geoff Lloyd shares his insights Government’s First Home
the world from an external on the future of financial advice Loan Deposit Scheme, which
perspective, says Gihan in Australia. has recently kicked off.
Perera.
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in Money & Life is copyright. Reproduction in whole or part is prohibited without The FPA does not endorse any products or services advertised in the magazine.
the written permission of the FPA Chief Executive Officer. Applications to use References or web links to products or services do not constitute endorsement.
material should be made in writing and sent to the Chief Executive Officer at the Supplied images ©Shutterstock. ISNN 1033-0046. Cover and FPA Awards’ images
above e-mail address. Material published in Money & Life is of a general nature supplied by Adam Hollingworth.
only and is not intended to be comprehensive nor does it constitute advice. The
material should not be relied on without seeking independent professional advice CFP ®, CERTIFIED FINANCIAL PLANNER ® and CFP Logo® are certification marks
and 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
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FEBRUARY 2020 3
FOCUS
SUPPORTING
THOSE IMPACTED
BY BUSHFIRES
The scale and intensity of our country’s bushfire devastation as we ended 2019 and
welcomed the new decade, has been unprecedented and quite overwhelming.
| D A N T E D E G O R I C F P ®, C E O
To those FPA members who are information on this program, go to WHAT SHOULD ADVICE
and continue to serve as volunteer fpa.com.au/bushfiresupport. LOOK LIKE BEYOND 2020?
firefighters and in other supporting
We know that major events, such Affordability of advice, the role of
roles, I honestly can’t express enough
as the bushfire crisis, can often regulation, and trust in financial
gratitude and appreciation for the
have unpredictable and significant planning – these are some of the
work you do.
impacts on your health, wellbeing and major themes we’re anticipating
To those of you who have been emotions. Please make use of the will shape the financial planning
personally impacted, I wish you FPA Wellbeing program if you require profession over the next five years.
strength and determination to carry free, confidential support at any time.
on and adjust to your new normal. Head to: fpa.com.au/wellbeing. Thank you to those of you who
I also know that many of you have took part in our consultation to help
clients who have been affected CFP® CERTIFICATION us formulate the policy plans for
and you’re already in the process PROGRAM AND MASTERS advocacy and Government relations for
of reaching out to them to help in the financial planning profession from
COMBINED 2020-2025. We are now finalising the
whatever ways you can.
I’m excited to announce a brand new five-year policy vision, which we
As Australians in affected areas begin new initiative which means financial will share in the next month.
to re-build their lives, together we planners can now complete the
are offering our support through the education requirements of the Please enjoy this edition of your
newly established Financial Planning CFP® Certification Program while magazine.
Bushfire Pro Bono Program. studying for a Masters degree. Deakin
University is the first to come on
We have teamed up with the AFA
board with this integrated program
and we’re asking those financial
that allows planners to work towards
planners who have the capacity to
the global standard in financial
help, to come forward. Thank you
planning and achieve their Masters
to those of you who have already
simultaneously, offering significant
volunteered to assist Australians who
savings in time and cost. Head to
have been affected and are seeking FOLLOW D AN T E ON T WIT T ER
page 22 to learn more. @D D EGOR I1 0
advice to rebuild financially. For more
4
FOCUS NEWS
SUPPORT FOR BUSHFIRE
AFFECTED COMMUNITIES
The FPA is establishing a pro bono to assist fire-affected Australians by them rebuild and recover.”
program where members can emailing the FPA at:
In addition, for members who have
volunteer their time to help Australians probono@fpa.com.au.
been directly impacted by the
impacted by the recent bushfire
“The FPA community supported bushfires, FPA Wellbeing is providing
emergency.
those who suffered in the 2009 Black free, confidential support for them.
Many individuals, families and Saturday bushfires and we want to There is also a critical incident and
businesses have struggled throughout offer our support again,” said FPA CEO major events resource kit available,
the current bushfire season, putting Dante De Gori CFP®. which includes information on how to
significant financial pressures on them. support yourself and others impacted
“Our members have lifelong
To help these Australians rebuild their by the bushfires.
relationships with some of the people
lives, the FPA is calling on practitioner
impacted by the bushfires. We will be
members to lodge their interest in
offering whatever aid we can to help
being part of a pro bono program
FUTURE OF THE SOA DIGITAL
INTERACTIVE GUIDE
The FPA has launched the Future of experts, lawyers, licensees, content, De Gori added that research showed
the Statement of Advice (SOA) digital digital media specialists, and advice that only 8 per cent of consumers had
interactive guide to help planners technology specialists – to form a a preference for the written paper-
develop more accessible, personalised Future of the SOA working group, and based documents. The other 92 per
and meaningful client experiences set the challenge to create a vision of cent of clients learnt best by watching,
during the advice process. what the future SOA could look and listening, engaging and testing to
feel like,” De Gori said. come to their understanding of their
According to FPA CEO, Dante De Gori
financial plan.
CFP®, advancements in technology “We are delighted to see the successful
has allowed for the more efficient culmination of those efforts with the “This guide represents a starting
production of SOAs, as well as being launch of the Future of the SOA digital point for the next decade of financial
a more effective communication tool interactive guide. The guide includes planning. We must start to ‘break
by using icons, symbols, graphics, a series of videos that cover topics paper’ and utilise the full breadth of
expandable and linked text, audio and relating to digital SOA production and digital, tech and communication modes
video to better engage and inform delivery, as well as six sample digital available, to allow advice delivery to
clients. SOAs created by fintech providers be more accessible, personalised and
which planners can begin to implement meaningful for clients.”
“Last year, the FPA invited a wide
in their practices today.”
and diverse group of financial To access the Future of the SOA digital
planning professionals – including In addition to video, the guide can also interactive guide, go to fpa.com.au/the-
members, regulators, compliance be accessed in audio or text format. future-of-the-soa
6
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FOCUS
The FPA congratulates the following members who have been admitted as
CERTIFIED FINANCIAL PLANNER® PRACTITIONERS
ACT NSW QLD VIC
Thomas Delaney CFP® James Miller CFP® Agnieszka Oudendijk CFP® Nicholas Phillips CFP®
StatePlus NAB Financial Planning FMD Group Media Super
Scott Paterson CFP® Matthew King CFP® Matthew Gartrell CFP® James Kelly CFP®
Deep Wealth Perpetual Private Macquarie Private Wealth Ambleside Wealth Advisers
Hongyu Li CFP® Jonathon Missingham CFP® Julian McBean CFP® Jason Sibio CFP®
NAB Financial Planning Oracle Advisory Group NAB Financial Planning Commonwealth Financial
Laura Imanse CFP® Gregory McLoughlin CFP® Planning
Simon Farmer CFP®
AustralianSuper NSW Trustee and Guardian Walsh Financial Planning Asha Achuthan CFP®
Cassandra Pearson CFP® Nobel Pullan CFP® NAB Financial Planning
Crystal Bobir CFP®
MMCC Crestone Wealth Kural Akcamci CFP®
Tupicoffs
Khabilan Management Mercer Financial Advice
Rohit Maheshawari CFP® (Australia)
Rukmanikanthan CFP® Adrian Alterator CFP®
SWA Financial Planning Commonwealth Financial
Deloitte Vincent Armocida CFP®
Planning Hanmorre Financial
Craig Young CFP®
Mercer Financial Advice Terence Verhaar CFP® Solutions
SA (Australia) Findex Advice Services Michael Eagar CFP®
Nicole Dwyer CFP® Peter Dickinson CFP® Gina Somers CFP® ANZ Financial Planning
UniSuper Management iRetire Wealth Mercer Financial Advice Bree Hanslow CFP®
M A Don Romesh L (Australia) OzPlan Financial Services
Arsecularatne CFP® Brenton Gluch CFP®
TAS KPMG Lifepath Financial Planning
Weifeng Dong CFP®
CBus
Thomas Whitley CFP® Michael De Bomford CFP® Adam Miliszewski CFP® Alison Dellow CFP®
Premium Business Group PSK Financial Services Cervus Private Wealth Hewison and Associates
Michael Fox CFP® Drew Partridge CFP® Mehmed Kahric CFP® Dermot Reiter CFP®
Main Street Financial AMP Advice Elston APW Partners
Solutions
Mathew Camkin CFP® Morgan Papi CFP® Thomas Bowman CFP®
SWA Financial Planning BDO Private Wealth McLaren Hunt Financial
WA Christopher Gilmour CFP® Advisers Planning
Strategy First Financial Jessica Olsen CFP® Michael Wallace CFP®
Ronny Salomon CFP® Planning Securinvest Financial
Viridian Advisory BDO Private Wealth
Linh Nguyen CFP® Advisers Advisers
Jennie Lim CFP® Bridges Financial Services Jacqueline Quental CFP®
Patersons Securities Damon Zischke CFP®
Lin Liu CFP® OBT Financial Planning Integritas Wealth Advisers
Jarryd Thraves CFP® Commonwealth Financial Chitladda Mahanivong CFP®
Blueprint Wealth Kristy Longhurst CFP®
Planning Kent Private Wealth RDL. Financial Planning
Michael Fong CFP® Oliver Pereira CFP® Jason Kenna CFP®
EQ Financial Shadforth Financial Group
SINGAPORE Tamim Marial CFP®
Wilsons Advisory &
Stockbroking Justin Smaluch CFP®
Belinda Barclay CFP® Findex Advice Services Andrew Faber CFP® Securinvest Financial
AON Hewitt Wealth Advisers
Sarah Owens CFP® Elston
Management Singapore RCB Investments trading as Joshua Logan CFP® Charles Green CFP®
Finance Control Findex Kearney Group Financial
Ian Bacon CFP® Services
Findex Tao Hsu CFP®
Ljupco Ivanov CFP® Doquile Perret Meade
Eluvia Pierce Hanlen CFP®
Peter Finch CFP® Hewison Private Wealth
ANZ Financial Planning Moiz Mandani CFP®
Viet Dao CFP® NAB Financial Planning
UniSuper Management Kristianne Badgery CFP®
Shreya Singh CFP® Retirement Victoria
KPMG
Karen Truman CFP®
AMP Advice/ipac
Jonathan McLean CFP®
Minchin Moore Private
Wealth Advisers
8
FOCUS
ACADEMIC GRANTS RECOGNISE
ELDER FINANCIAL ABUSE
At the 2019 FPA Professionals Congress
in November, the Financial Planning
Education Council (FPEC) announced
two Research Grant Award winners.
The first grant award went to the
research team of Associate Professor
Tina Cockburn TEP, Dr Kelly Purser TEP
and Dr Sherrena Buckby of Queensland
University of Technology (QUT), who
were presented their award for their
research titled: The role of financial
planners in preventing, recognising and
responding to elder financial abuse.
The second winner of the FPEC
Research Grant Award was the research The Research Grant Award winners were recognised alongside the 2019 FPA Award
team of Dr Tracey West, Richard Olley winners at the FPA Professionals Congress. For more on the FPA Awards, go to p32-35.
and Dr Tom Verhelst of Griffith University
for their research titled: Quantifying the policy level. Both of this year’s winning “FPEC recognises the valuable support
dynamics of elder abuse. research projects will add significantly of NAB in sponsoring the 2019 program
to the body of work on the important and is calling for more sponsors to join
Commenting on the awards, FPA CEO
issue of elder financial abuse.” NAB and FPEC to support and expand
Dante De Gori CFP® said: “High quality
the 2020 academic research program,”
academic research into financial planning Each of the winning teams were
De Gori said.
is very important to the profession, as awarded a grant of $5,000. The FPEC
it raises the profile and standing of the Research Grant Awards are sponsored
industry, both in the community and at a by NAB.
FASEA-APPROVED
FINANCIAL
PLANNING COURSES
ON CAMPUS
AND ON-LINE
As a FPA member you get 15% off your
tuition fee * with any postgraduate
FASEA approved course at Swinburne.
• Graduate Diploma of Financial Planning
• Master of Financial Planning **
• Master of Professional Accounting/Master of Financial Planning **
CRICOS 00111D RTO 3059. FBL0001_2001
• Bridging Courses
or Master of Professional Accounting/Master of Financial Planning as well as the ethics unit
**Available on campus only
FEBRUARY 2020 9
FOCUS
2019 CONGRESS:
EMBRACING CHANGE AT NEW HORIZONS
10FOCUS
Over 1,400 delegates were ready to face the future and embrace change at the
2019 FPA Professionals Congress. Here is a snapshot of some of the highlights
from the Welcome Reception and Future2 Celebration.
FEBRUARY 2020 11INSIGHT
OPINION CORNER
YOU SAY/ 103.8
THEY SAY 99.6
In this new section, we take a look at how you, financial
planners and your clients think about different topics.
In this issue, we look at the year ahead.
JAN 2019
WE SURVEYED FINANCIAL PLANNERS FOR THEIR CONSUMERS REMAIN WARY
THOUGHTS ON THE FOLLOWING TWO QUESTIONS AS WE HEAD INTO A NEW
DECADE
What do you see as the As we move into a new We took a look at the Westpac-
Melbourne Institute Consumer
biggest challenges facing decade, how do you see the Sentiment Index to see how
your clients in 2020? profession evolving and consumers feel about the year
“Clients are very busy and focused
changing over the next five ahead
on the short-term to the detriment of years? Consumers are holding on to
long-term goals, which are sometimes the same financial wariness that
intangible. For example, there may “There will be fewer planners to featured in 2019, but there is some
be a slowing economy and low wage service clients. Practices will become slivers of hope.
growth that plays on their minds. corporatised and professional. The cost
Another challenge is the volume of of advice will increase, partly due to Although the Consumer Sentiment
unfiltered information that is available new legislative requirements and also Index showed yet another drop in
and clients are overwhelmed by it, as a result of supply/demand pressure.” January, Westpac chief economist
not knowing what or who to trust, or Bill Evans says there is some
“Higher education and professional
how to apply the information to their improvement.
standards will mean the profession
personal situation.” will change for the better. We can also “Optimism around financial
expect to see less salespeople in the markets and the global economy
“Markets will again be challenging for industry.” has lifted, with the Australian
clients.” share market up by 6 per cent
“There’ll be fewer planners, less new
“Dealing with complexity is always entrants, more clients needing help and since the start of the year.
challenging.” the emergence of a true profession.” “Consistent with improved
“Lower investment returns, low wages “There will be less focus on investment performance of financial markets
growth and higher advice fees, will be a management and more focus on and housing we saw the ‘own
challenge for clients this year.” general guidance and strategy finances’ components remain
development.” broadly steady. The ‘finances
“Technology and getting returns in versus a year ago’ sub-index rose
low risk assets, such as cash and term “We can probably expect to see more 0.7 per cent in January and the
deposits, will continue to challenge robo advisers, less face-to-face client ‘finances, next 1 2 months’ sub-
clients and planners alike.” contact, and greater use of technology, index increased by 0.9 per cent.”
like Skype, to conduct client meetings.”
12INSIGHT
CONSUMER SENTIMENT
CONSUMER SENTIMENT INDEX 2019 TREND SETTLES IN FOR THE
LONG HAUL
The downward trend in consumer
sentiment has been a feature for
more than a year now, creating
an ongoing and challenging
environment for financial planners to
104
be advising clients.
“Since the lows of the Global
102
Financial Crisis, where the Index
101.8 averaged only 89 over a 15-month
101.3
100.7 100.7 period from March 2008 to May
100
2009, there have only been seven
100
monthly readings where the Index
98 has printed below 93.4,” says
98.2 Westpac chief economist, Bill Evans.
97 96
“This low level of confidence is
96.5
consistent with the generally
lack lustre reports on consumer
95.1
94 spending. A more widespread
boost to spending will be required
93.4 before there are credible grounds
92.8
92 to dispute the downbeat signals
APRIL 2019 JULY 2019 OCT 2019 JAN 2020 associated with the consistently
low levels of the Index.”
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FEBRUARY 2020 13INSIGHT
3 REASONS
TO BE CONFIDENT IN 2020
As FPA CEO Dante De Gori CFP® looks forward to what 2020 has in store for the
profession, he reflects on the growth and change we’re seeing and how this provides
planners with a major opportunity to advance in their career and professional standing.
For some time now, the financial acknowledge how far we still have EDUCATION IS ENHANCING
planning profession has been under to go. Transformation takes time and OUR PROFESSIONAL
pressure from widespread change. momentum, discipline and energy.
Fresh demands on the resources of What can keep us going when we feel
STANDING
businesses, both large and small, depleted in these areas is vision and We all know consumers who have
are coming from major shifts in optimism. So, I want to acknowledge received advice hold a more positive
demographics, legislation, education three major reasons why members view of the financial planning
requirements and the disrupted can feel positive about these profession. Data from the ASIC
landscape of the financial services changes, and the career and future research now confirms this, with
sector as a whole. that lies ahead of them. financial advice clients being four
times more likely to say they had “a
All of this can be very unsettling great deal” of confidence in advisers.
for our members. But a context of THE GROWING DEMAND
change creates opportunities for our FOR FINANCIAL ADVICE So, how can we, as a profession,
profession to progress and evolve like boost confidence among unadvised
Economics 101 tells us the projected
never before. Australians and steer them towards
supply and demand ratio is weighted
acting on their opinion that
In rising to the challenges of new heavily in favour of financial planning
‘financial advisers have expertise in
FASEA requirements and post- being a growth profession. In its 2019
financial matters I do not have’ – a
Royal Commission consumer research report ‘Financial Advice:
statement 79 per cent of ASIC survey
sentiment, we have the chance to What consumers really think’, ASIC
respondents agreed with?
rebuild confidence and establish our found that 41 per cent of Australians
profession as genuinely qualified to intend to get financial advice in A 2018 report from Ernst &
act in each client’s best interests. the future. Recent Investment Young, ‘How do we really build
This is something the majority of Trends (2018) research shows a financial capability’, goes further
members have always done. Going similarly optimistic pipeline, with 51 in acknowledging just how critical
forward, ethical and client-centred per cent of Australians reporting they professional advice is to better financial
conduct will be upheld in education have an unmet advice need. outcomes. “Expecting a consumer to
and professional standards, which acquire all of the knowledge, insight
Demand for expert financial advice
will, in time, transform the culture and and comprehension required to
from emerging generations, in
reputation of our profession. manage and maintain their financial
particular, is extremely positive. Our
decisions, is like expecting a patient to
As the new year begins, perhaps with own FPA ‘Gifts that Give’ 2019 national
perform surgery on themselves,” the
greater certainty about the future research reports that 81 per cent
report says.
for our members, it’s important to of Gen Z and 76 per cent of Gen Y
surveyed would like to see a financial While we can’t expect higher
planner to create a plan to achieve education standards for financial
their life goals and provide peace of planners to instantly put us on
mind that their finances are in order. the same professional footing as
If you want a career that
surgeons, they can confirm a truth
offers predictability, The ASIC research also confirms that
that this statement highlights: genuine
more Australians are receiving advice.
routine, and no financial expertise from a qualified
Previously, 20 per cent stated they
requirement to stretch had received financial advice in the
professional transforms people’s lives
and grow professionally by making a meaningful positive
past, and the new findings reveal the
difference to their financial wellbeing.
and personally every number has risen significantly to 27
per cent (a 35 per cent increase). In adopting a more rigorous, exacting
year, financial planning
With more people already seeking education framework for financial
is not for you.” financial advice, plus the latent demand planners, we’re making it clear
from Australians with unmet advice who Australians can turn to for the
| DANTE DE GORI CFP®
needs, the potential market for our knowledge, capabilities and support
professional services is growing apace. they value.
14INSIGHT
GREATER FREEDOM TO relationships with mentors, receive
CHOOSE YOUR CAREER an accelerated start to networking
and building connections within
With the advanced PATH the profession, and learn from
education and training Growth and learning is an integral experienced professionals.
standards now required part of what makes a financial
planner. If you want a career that In time, this new level of academic
for financial planning, and practical preparation will provide
offers predictability, routine, and no
new entrants can look requirement to stretch and grow financial planning practices of all
forward to enjoying the professionally and personally every types and sizes with high calibre,
same standing as other year, financial planning is not for you. experienced recruits to enhance
service quality for a greater number
professionals, such Unlike many other jobs in finance, of clients.
as accountants and the work/life flexibility of a career
engineers.” in financial planning can be very
A STRONG FOUNDATION
appealing to those seeking to
balance the demands of modern FOR EXCELLENCE
| DANTE DE GORI CFP®
life. As a financial planner, you can The big picture is that a financial
work at a large financial institution, a planner can help guide people to
smaller boutique firm, or even start achieve their own financial goals
According to interviews from the up your own practice in a location and security through personalised
ASIC report, many people feel poorly that suits you. With all the changes strategies – you get to help inspire
equipped to judge the expertise of a we’re seeing in the profession, new and activate people’s dreams by
financial planner. Going forward, taking business models are likely to continue creating a vision.
the education threshold for financial emerging as our profession adapts.
The high calibre of entrants to the
planners to the next level can give All this adds up to having greater
industry is just one of the ways our
clients confidence they are working freedom to manage your career on
profession can excel in bringing
with someone fully qualified to provide your own terms.
these visions to life. By setting
expert advice in their best interests. With the advanced education and the bar higher for excellence in
training standards now required for service delivery, our new standards
financial planning, new entrants can in education and ethical conduct
By setting the bar higher look forward to enjoying the same are critical to rebuilding consumer
for excellence in service standing as other professionals, such confidence in our profession.
delivery, our new standards as accountants and engineers.
As trust in our capabilities and
in education and ethical Once they have completed their expertise grows, members are well-
conduct are critical to higher education, graduates must positioned to meet strong demand for
rebuilding consumer undertake a Professional Year in order their qualified insights and meaningful
to register as a financial planner. help in matters of money and life.
confidence in our
Through the mentoring program
profession.” embedded into the Professional
Year, new entrants form strong Dante De Gori CFP® is CEO of the FPA.
| DANTE DE GORI CFP®
FEBRUARY 2020 15INSIGHT
MEET THE BOARD
FOCUSED, EFFECTIVE AND EFFICIENT
It’s all go for Michelle Tate-Lovery CFP®, as she prepares for
her third FPA Professionals Congress.
There’s no concealing the passion A NATURAL PROGRESSION And members responded, voting
Michelle Tate-Lovery CFP® has for Michelle admits to living a very Michelle to the Board in November
helping people, which epitomises her full life. Not only is she involved 2017.
approach to financial planning. And with looking after the needs of her
the Melbourne-based practitioner clients, as well as running her own THE BEST GIG EVER
must be doing something right, business, but she actively mentors
chalking up 30 years in the Along with her Board responsibilities
women in the profession and wider and meetings, which includes keeping
profession, which she says, works out community. Most recently this has
to be more than 10,000 individuals on top of a very fluid and changing
included mentoring a Zimbabwean professional landscape, Michelle is
she has seen during that time. woman as part of the Brotherhood also Chair of the Congress Committee
“I think what has sustained me during of St Laurence’s Refugee Migrant – a position she has held for over
those 30 years has been my approach Entrepreneur Program for Women. two years.
to financial planning, which I see as a “Financial planning is life changing
vocation,” Michelle says. “There’s been “Being Chair of the Congress
and as a planner, I’m in a privileged Committee is a significant time
a tremendous amount of change in position to help others change their
the profession during those three commitment but extremely
lives for the better,” she says. rewarding,” she says. “Bringing
decades but I’m still passionate about
financial planning, despite the pace of together a community of planners
change.” for Congress is probably the best gig
ever. The vibe has to be right. The
Operating out of her Carlton office, My role as Chair of content has to be right.
Michelle runs Unified Financial Congress is to ensure that “So, my role as Chair of Congress is
Services – a small planning business I am eliciting as much
with a staff of six, which has to ensure that I am eliciting as much
developed a business model of feedback from members feedback from members as to what
financial life planning that targets as to what they want to they want to see, hear and experience
at Congress. My aim is to challenge
the niche allied health professional see, hear and experience people’s mindset to make incremental
sector. She acknowledges the great at Congress.”
team of people she works with, who improvements in themselves and their
have helped her grow the business, businesses, and to meet challenges
enabling Michelle to leverage her time head on.”
to contribute to the profession. With this ‘calling’ to the profession, it Michelle confesses that as Chair
“At a very early stage in my planning came as no surprise that Michelle put of Congress, she is in an amazing
career, I wanted to educate clients herself forward for election to the FPA position to help source and speak to
about financial planning, so I Board in November 2017. many inspiring and knowledgeable
developed workshops and financial people, in order to deliver a program
“For some time, I’ve been working that is rich in ideas and concepts,
literacy programs in the workplace, in the background with raising
including public hospitals and that planners are able to take back
awareness of financial planning in and implement within their own
pathology labs. People wanted to the broader community, as well as
understand money better that wasn’t businesses.
working with universities to attract
linked to product, so I helped them great people to our profession. “Our aim at Congress is to challenge
with that need and charged on a fee- practitioners with new ideas and
for-advice basis,” Michelle says. “The idea of joining the Board had concepts, and help them to deliver
been on my mind for a while, as I saw better advice to their clients. And
“From those early days, I’ve been able it as an opportunity to help shape
to build a business specialising in the I’m confident we are doing that,” she
the future of our profession in a more says. “In working on Congress, I see
allied health professional sector. And hands-on way, address member
it’s been truly amazing to see the firsthand how driven the FPA team
needs and to give back to my beloved are to deliver to members a great
journey of clients over those 30 years.” profession. So, I felt compelled to experience.”
put up my hand for FPA Board
nomination.”
16INSIGHT
THERE’S MUCH TO DO
As a small business owner, Michelle is confident in the direction the profession is heading and the small role she is
having in shaping the future of financial planning. But if you press her on the three things that concern her most, it
would be: the pace of change, the cost of advice, and rebuilding trust.
PACE OF CHANGE “This means consumers who And when she’s not with family,
1 It concerns Michelle that the
profession may lose “great people”
really do need our help are
being priced out of the market.
keeping fit and catching-up with
friends - sneaking in that last glass
However, quality financial advice of bubbly - you might find Michelle
as a result of the pace of change
should be available to all people pushing out a few riffs on her guitar,
and the new education standards
who need it and at a reasonable although she hastens to mention, she’s
required for planners.
price.” only a beginner “but it’s really good fun”.
“At this critical time, the FPA will
Michelle says the more people
deliver as much assistance to
who better understand money
practitioner members as possible,”
and financial planning, means
she says.
there will be more people
Michelle points to a range of who are able to make smart
resources, like FPA Return to financial decisions. “And that’s
Learn – an online education hub to why financial planning is so
assist members better understand meaningful and powerful.”
the new FASEA education
standards, while providing
invaluable information. 3 REBUILDING TRUST
However, when it comes to
the future of the profession,
2 COST OF ADVICE
Michelle would also like to see the
Michelle’s glass remains definitely
half full, and it’s hard not to be
escalating cost of advice become swept up by her enthusiasm.
more affordable to a greater
“What’s very exciting as we
number of Australians. Ideally,
move into the future, is that
she would love to see financial Michelle Tate-Lovery CFP®
with all the advocacy work
planning advice be tax-deductible, is Managing Director and
the FPA is currently doing, it’s
which remains firmly on the FPA’s Principal Financial Adviser
going to be amazing to see how
policy agenda. of Unified Financial Services,
regulation will evolve, transform
which is part of the FPA
The FPA also has great resources and change, to enable financial
Professional Practice
available for planners to help planning to be what it’s all
program that recognises
them become more efficient about – helping clients transition
the highest calibre financial
with providing advice, through through different parts of their
planning practices within the
guidance booklets such as Beyond lives, by giving them choices
profession.
the Best Interest Duty (focusing and confidence about their own
on initial advice) and Further financial futures.”
Advice (focusing on best practice
And while there’s plenty in
ongoing advice relationships). In
Michelle’s diary to keep her busy
addition, by being part of FPA Michelle Tate-Lovery
most hours, she does aim to
Professional Practice membership, CFP®
get her life/work balance right.
planners have access to business
“It’s about practising what you
tools and forums that enable PRACTICE:
preach,” she says.
practitioners to tap into what Unified Financial Services
best practice advice businesses To ensure she is “focused, POSITION:
are doing. effective and efficient”, Michelle Managing Director and
is always forward-looking,
“Unfortunately, as a result of Principal Financial Adviser
which includes adding her own
duplication of regulation and
‘downtime’ into her diary. YEARS AS A PLANNER:
compliance that the profession 30 years
has had to cope with over the last “That’s because the people who
few years, it has actually added to I love and who are closest to me, ELECTED TO THE FPA
the cost of running a business and are very important to me; they BOARD:
providing advice. are my number one priority.” November 2017
FEBRUARY 2020 17INSIGHT
2020Despite a year of unprecedented regulatory change ahead for the profession,
Ben Marshan CFP® says there is light at the end of the regulatory change tunnel.
THE YEAR OF
REGULATORY
CERTAINTY
The last few years of financial planning THERE IS GREATER BIG DECISIONS TO MAKE
regulatory change has been marked by CERTAINTY AHEAD Implementation challenges will cover
confusion and uncertainty. advice process, services and business
Despite this, we are moving forward as
Two years on from the Royal a profession. This year at least offers structure. As these laws are rolled out,
Commission being called, we light at the end of the regulatory you will have a number of big decisions
don’t yet know exactly what the change tunnel - not in terms of to make over the coming year to
recommendations will mean in everything being implemented - but at ensure you comply.
practice. It’s also been over two years least in knowing what the rules of the The individual recommendations
since FASEA commenced its work game will be for the foreseeable future. are not that daunting, possibly with
and four years since the Trowbridge the exception of the annual renewal
report, with the reality of the life FASEA has now set its standards.
Many of us are making great progress and product authorisation process.
insurance remuneration changes only But when combined they create
just now emerging. to meet those standards. Plus we have
certainty that the Royal Commission significant challenges.
recommendations will be legislated It’s going to be critical to understand
this year. the cost of providing advice, have a
This year at least offers light clear value proposition for your clients,
In August last year, shortly after the
at the end of the regulatory election, the Morrison Government and the administrative complexity in
change tunnel – not in released its Financial Services Royal collecting fees from clients.
terms of everything being Commission Implementation Roadmap. Take for example, the complexity of
implemented – but at least This is the legislation timeline the recommendations in relation to how
Government has committed to - and you collect fees from your clients.
in knowing what the rules will be held accountable by Parliament This includes 2.1 (annual renewal and
of the game will be for the and the media (see Table 1). payment of advice fees – including
foreseeable future.” For those of us in policy, compliance product authorisations); 2.4 (ending
and advocacy roles, the next 12 months grandfathered commissions); 3.2 (no
| BEN MARSHAN CFP ®
deducting advice fees from MySuper
will be like living in a cyclone. The
Government wants to show they have products); and 3.3 (limitations on
ticked all the boxes they committed to. deducting advice fees from choice
Plus, we had the Federal election and And we, the FPA, will be advocating superannuation accounts), plus the life
opposing proposals from each side for the right outcomes for our clients insurance framework commission limits
of the political divide, creating further and ensuring the sustainability of the and FASEA code of ethics standards.
uncertainty. financial planning profession. Operating under the restrictions
It left many of us scrambling to We’re committed to supporting you created by these laws, plus the
understand and prepare for the around the changes to your financial annual renewal obligation, product
potential eventualities and seriously planning process and practice that will fee collection authorisation and fee
questioning what financial planning result from this cyclone of legislative disclosure statement requirements,
would look like at the end of it all. change. will potentially take collecting and
disclosing fees for financial planners an
Early conversations with Government administration nightmare at a whole
and the Treasury Royal Commission new level.
Taskforce suggest the plan is to
implement the recommendations as When coupled with capital risks
quickly, efficiently, and as close to the associated with recommendation 2.9
directions provided by Commissioner (requiring licensees to remediate fees
Hayne, as possible. That is likely to to clients in the event of misconduct
create a challenging environment for – i.e. failure to provide a service in
financial planners, considering how your service agreement), it’s worth
long it took to implement and bed considering whether an ongoing
down just the FOFA amendments. fee model will be sustainable for
your business, particularly without
technology to automate this process.
18INSIGHT
CONSISTENT RESPONSES TABLE 1
AND MESSAGES
The FPA is making these challenges FINANCIAL SERVICES ROYAL COMMISSION
clear in discussions with Treasury, IMPLEMENTATION ROADMAP
the Government, the opposition and
cross benches in the Senate. We IMPLEMENTATION
ROYAL COMMISSION RECOMMENDATIONS
are also working closely with the TIMELINE KEY
other financial planning professional
Ending grandfathered commissions for Legislated and under ASIC
associations and the broader financial 2.4 financial advisers. review.
services industry, to ensure consistent
responses and messages. Introduced to Parliament by
Removal of claims handling exemption for
4.8 30 June 2020.
However, while the Government insurance.
has indicated it understands and
is considering our concerns, it has 2.1 Annual renewal and payment for financial
advice.
promised to implement the Royal
Commission recommendations as Disclosure of lack of independence of
2.2
written and given the scrutiny, is intent financial advisers.
on keeping this promise.
Reference checking and information
2.7 sharing for financial advisers.
DISCIPLINE AND
INFORMATION SHARING 2.8 Licensee obligations to report compliance
concerns. To be consulted on and
On a more positive note, there introduced to Parliament
are recommendations that will be Licensee obligations where misconduct by 30 June 2020.
2.9
implemented relating to discipline and by financial advisers.
information sharing.
No deducting advice fees from MySuper
3.2
Many members complain about the accounts.
minority of bad planners who give Limitations on deducting advice fees from
our profession a bad name by moving 3.3 choice superannuation accounts.
around from licensee to licensee.
Thankfully, recommendations 2.7, 2.8, Implementing the ASIC Enforcement
7.2 Review Taskforce’s recommendations to
2.9 and 7.2 will mean licensees will be improve the breach reporting regime.
responsible for ensuring bad apples are To be consulted on and
reported efficiently to the regulator. 2.10 New disciplinary system for financial introduced to Parliament by
advisers. end-2020.
Combined with recommendation 2.10 – Consultation paper released.
a single disciplinary system for financial 7.1 Compensation scheme of last resort. Introduced to Parliament by
planning – identification of poor end-2020.
advice should be dealt with efficiently, 2.5 Life insurance commissions review. ASIC review in 2021.
rebuilding trust with the Australian
public, regulators and Government. Review measures to improve the quality
of financial advice. Will examine all
Further, the creation of a single exemptions from the ban on conflicted
disciplinary system creates an 2.3 remuneration for general insurance,
consumer credit insurance, timeshare and
opportunity for the new body to stockbroking remuneration, and stamping Review to be undertaken
consolidate and create a consistent fees. in 2022.
interpretation of the four Acts and
seven regulators planners comply Review of remaining exemptions from
with. This could significantly reduce red 2.6 the ban on conflicted remuneration. Will
occur as part of the review of measures to
tape and reduce the risk of compliance improve the quality of financial advice.
failures due to conflicting regulation.
DON’T BE OVERWHELMED
My message is that, unlike many of And reach out to your local federal
the changes in the past decade, the member of Parliament individually
coming changes are foreseeable. There and as FPA chapters, so we can give
is an opportunity to plan ahead and consistent messages about what the
have your business ready. Royal Commission recommendations
mean for your business and the clients
Get involved with the FPA. The more
you professionally serve.
case studies, data and feedback on
the Royal Commission implementation
consultations we get, the easier it is
to make a case on why subtlety and Ben Marshan CFP® is FPA Head of
trade-offs are needed in legislating Policy and Professional Standards.
these recommendations.
FEBRUARY 2020 19INSIGHT
EMBRACE THE
OPPORTUNITY
As a practitioner and academic, Geoff Pacecca AFP® talks to Money & Life
about the importance of lifting the bar on education to help restore consumer
confidence in financial planning.
The Australian Council of Professions If they embrace education, and I mean WHY ARE SOME
advocate that the tenets of a formal university-level education, then PRACTITIONERS FEARFUL
profession are ethical standards, public they will be part of a group of highly
perception of specialist knowledge skilled professionals, which is a good
OF EDUCATION AND
and skills, education and training, and thing for the industry, as a change in HOW CAN THAT FEAR BE
the application of those skills in the public perception will surely follow. REMOVED?
interest of others. Vicktor Frankl, a holocaust survivor,
We should think ourselves as one
These are of all of the things that are group of individuals lifting education once said: “When we are no longer
undergoing dramatic change at the standards so that we, as a group, able to change a situation, we are
moment with the implementation of embark on the journey towards challenged to change ourselves.”
FASEA’s educational requirements financial planning becoming a real I understand that having to go ‘back
and Code of Ethics, and the profession. And that may require you, to school’ for many financial planners
regulatory changes to ensure financial at an individual level, to get educated. is daunting. And fear can play a big
advice is in the best interest of clients. part in resisting these educational
While I don’t believe we can yet call requirements, which in turn will
ourselves a profession, I think over convert into stress and anxiety.
the next five years as we change, We should think
I have two things to impart on those
and public perception changes, the ourselves as one group who feel anxious.
financial planning industry will be of individuals lifting
considered a profession. I think the First, you need to be organised,
Australian public deserves this and education standards prepared and set aside time for
will be a significant beneficiary of | GEOFF PACECCA AFP®
study. If you do these things, in my
these changes, as I fundamentally experience as a student and lecturer,
believe professional non-conflicted it is not difficult to pass a university,
advice is valuable. bridging course or any other course
As someone who has spent 10 you need to complete.
WHY IS FORMAL years completing a range of formal Second, it will change you and make
qualifications, education should not you a better and more effective
EDUCATION IMPORTANT be perceived as a burden but instead,
FOR FINANCIAL PLANNERS? financial planner. A way to improve
embraced as a huge opportunity. your mindset is to think of the
I think exploring the notion of a positives, which will inevitably come
Most of us will not remember many
profession will help us understand the to bear.
of the detailed technical aspects of
educational changes currently in play.
education. Still, a formal education With the average age of a financial
Clearly, there is some hastiness and will give you better problem-solving planner well into the 40s, I understand
confusion around the implementation and communication skills, and most that commitments with teenage
of the new education standards. importantly, a thought-framework children, ageing parents, career and
But if we remove the noise and within which to navigate everything else, makes setting aside
commentary for a minute, financial complex issues. time for study difficult. But planning
planners who are committed to your semester, seeking the support
That’s what a formal education did
advice and buy into turning our of your family and outsourcing some
for me, and I can see the impact it has
industry into a profession, should care things to free up time – while it may
when comparing my undergraduate
about the education piece – you can’t come with a financial cost – will help
and post-graduate students.
have one without the other. you get through.
20INSIGHT
INSIGHT
A formal education
will give you better
problem-solving and
communication skills,
and most importantly,
a thought-framework
within which to navigate
complex issues.”
| GEOFF PACECCA AFP®
IN WHAT WAYS ARE FPA RETURN TO LEARN
UNIVERSITIES SUPPORTING FPA Return to Learn is a practitioner’s one-stop hub of
PLANNERS WHO ARE online tools and resources to support them as they navigate
WORKING AND STUDYING? the FASEA education standards and their education
pathway.
At the University of South Australia, we
have multiple delivery modes enabling FPA Return to Learn includes a wide range of tools,
students to complete their course including:
through UniSA’s online offering, or as EDUCATION PATHWAYS TOOL
an external student of the on-campus By answering a series of questions, users will be able to
program. Both modes of delivery are identify what further studies they will need to undertake in
specifically designed to give students order to comply with FASEA’s new education standard.
who also work, the flexibility to
study remotely. FINANCIAL PLANNING DEGREE COMPARISON TOOL
This ‘one-stop shop’ of all the approved education
All lectures are recorded and providers offering postgraduate degrees, allows planners
course materials are provided to compare degrees and courses available in the market,
online via a student portal, enabling and directly compare them to other education providers.
students the flexibility to study at their By doing so, planners can identify their best option.
own pace and at a time that suits them. The tool includes helpful information like: duration of
the program, cost per subject, full program cost and
HOW SHOULD PLANNERS delivery mode. The Cost Comparison tool also includes
a comparison of the credits each university will allocate
EMBRACE EDUCATION, to members who have completed the five unit CFP®
BOTH EXISTING AND Certification Program. The tool also includes links to
ONGOING? the University Credit and Recognition of Prior Learning
I think consistent with what I have policies.
said so far, the only thing planners STUDY TOOL KIT
can do is change their mindset and A comprehensive list of resources and aids to help planners
attitude towards education. And that with their studies.
comes with the understanding that
the commitment, energy and effort FASEA EXAM
to attain these qualifications are This tool includes a range of study resources, including
worth it, as it will give you a different transitioning to university level studies, preparing
perspective on things, will change the for assessments and exams, study techniques, time
way you think and inevitably, will make management tips and much more. FASEA’s practice exam and
you a better planner. recommended reading lists are also available on FPA Return
to Learn.
FPA CPD POLICY
Geoff Pacecca AFP® is Director of GAP The FPA’s CPD policy has been updated to align with the
Financial and Lecturer – new FASEA requirements.
Financial Planning, School of
Commerce at UniSA Business School.
ACCESS AT LEARN.FPA.COM.AU
FEBRUARY 2020 21INSIGHT
TAKING EDUCATION
TO THE NEXT LEVEL
In a first for financial planning, Deakin University will be offering the CFP® designation
as part of its FASEA approved Master of Financial Planning in 2020. Find out how this
initiative will help planners meet new education standards and get ahead in their career.
It’s been more than a year since new importance we attach to ensuring
education standards prescribed by our courses are engaging, meaningful
FASEA became mandatory for new and relevant to the needs of the
entrants to the financial planning profession,” says Marc Olynyk,
profession. With just a few years Program Director for Financial
for existing planners to bring their Planning at Deakin Business School.
qualifications into line with these
requirements, there are plenty of “By enrolling in an additional four units
options out there for planners to after completing a Graduate Diploma
secure their FASEA approved degree. of Financial Planning, and selecting
the CFP® Certification Unit as their
Given the investment in time and elective option, students enrolled
fees planners make in their tertiary at Deakin University will graduate
qualifications, many are seeking a not only with a Master of Financial
more effective learning model that Planning, but will also have satisfied all
can deliver the best in value, as of the education requirements of the
well as improved outcomes for CFP® Certification Program.
their career.
“Once the industry experience
By integrating the CFP® To meet this demand, and uphold requirements of the CFP® Certification
Certification Program their commitment to delivering Program have been satisfied, students
into Deakin’s Master high-quality and flexible courses for will be eligible to apply for the
professionals, Deakin University is CFP® designation.”
of Financial Planning, the first education provider to offer
existing planners are students an opportunity to graduate It brings the education options for
with both an academic qualification financial planners up to speed with
now able to satisfy the other professions, like accounting,
and professional designation in
education requirements of financial planning. which already embed designations in
both FASEA and the CFP® their academic programs.
Financial planners will now be able
Certification Program at to complete their CFP® Certification “The practice of nesting professional
certification units in Masters degrees
the same time, making a units while studying for their Masters
has been a long-standing practice,
degree with Deakin University.
significant saving in both especially by CPA Australia,” says
time and cost.” This is a great win for planners, Associate Professor Sharon Taylor
allowing them to combine all their from Western Sydney University.
| MARC OLYNYK study requirements into a single
course, obtaining their tertiary “As Chair of the Financial Planning
qualification and at the same time, Education Council (FPEC), I welcome
getting the highest global financial this initiative as I believe it will
planning designation from the peak be beneficial for both students
professional body, the FPA. and universities. While Deakin
University may be the first to offer
“As the first university to form this configuration, I am sure other
this type of relationship with the universities will closely follow with a
FPA, Deakin is demonstrating the similar design.”
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