The working group will address issues such as the quality of advice, product design and remuneration structures which were raised in ASIC’s Review of Retail Life Insurance and Advice report released on 9 October.

As independent chair, Mr Trowbridge will convene the working group and facilitate industry and policy solutions. The group will specifically address retail life insurance product structures, financial advice and distribution practices.

Brad Fox, CEO of the AFA said: “Mr Trowbridge brings extensive knowledge of Australia’s regulatory system to the Working Group. This will be pivotal in assisting the group to develop sustainable and workable solutions for stakeholders.”

Mr Trowbridge’s experience spans the private and public aspects of the financial system and ranges from competition in retail financial services, to capital structure issues, system stability and regulation. From 2006 to 2010 Mr Trowbridge was one of three Members of APRA’s executive where he was responsible for life and general insurance and executive remuneration. He was a pioneer of general insurance actuarial work in Australia and held senior management roles with QBE and Suncorp. In 1981 he started Trowbridge Consultingwhich became a leading actuarial firm in Australasia and which merged with Deloitte in 2000. Also, after merging with a US firm (Tillinghast) in 1984, he gained extensive experience in life insurance and, on deregulation of banking.

Mr Trowbridge said: “The ASIC report points to some important issues for consumers and the broader Australian community. These are complex and difficult issues for the life insurance and advice industries to solve.”

“I applaud the Association of Financial Advisers and the Financial Services Council in taking the initiative to set up a Working Group which will make a concerted effort to find durable solutions in consultation with all stakeholders.”

“I am delighted to contribute to this initiative through leadership of the Working Group,” he said.

The Working Group will include three representatives from the FSC and three from the AFA. The FSC’s representatives will be: John Brogden – FSC CEO; Andrew Hagger – group executive, NAB Wealth and CEO of MLC Limited; and Geoff Summerhayes – CEO of Suncorp Life.  AFA representatives will include: Brad Fox – AFA CEO; John de Zwart – CEO of Centrepoint Alliance and Jeff Thurecht – AFA NSW State Director.

A public report on the group’s initial findings will be released in mid-December and a final report in February 2015. The Working Group will consult with the regulators and Parliament on its recommendations.

John Brogden, CEO of the FSC said: “We take the findings in the ASIC report very seriously.”

“It is important that consumer trust and confidence in financial advice and products is restored to ensure Australians have sufficient life insurance cover.”

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Philip Kewin

The Association of Financial Advisers (AFA) and Zurich have named the Grand Finalists in the prestigious 2014 AFA Adviser of the Year Award and in its newest award – AFA Practice of the Year.

First awarded in 2003, and supported by Zurich since inception, the AFA Adviser of the Year honour is acknowledged as Australia’s premier advice award. This year heralds a new chapter in the Awards, with the best advice practice to be honoured separately.

AFA CEO, Brad Fox, said the grand finalists for both Awards have been selected after undergoing an intensive 360-degree assessment process with judges recognising education, experience, leadership within the profession, advocacy and innovation. An extensive client survey is part of the judging process as well as a practice visit from one of the judges, and then a final full-day judging showcase.

“As an Association, we are incredibly proud of the financial advisers that have entered the awards. The calibre of grand finalists proves that as a profession, we have a lot to celebrate. Each year, through the rigorous judging process, we get an important reminder that quality advice is still the norm in Australia, and that the very best are world class. Financial advice is first and foremost a service business and our grand finalists are incredible exponents of this.”

The AFA Adviser of the Year Award criteria includes elements such as client service, technical excellence, robustness of advice process, personal adviser qualities, industry contribution and commitment to improving financial literacy. The AFA Practice of the Year Award recognizes the practice’s use of technology, quality of client engagement materials, quality of the client feedback process and also commitment to improved financial literacy of clients and the wider community.

“The Awards represent an opportunity to not only celebrate the professional excellence of the grand finalists, but to also acknowledge the high quality nominations that were made from a significant number of other advisers and practices, all dedicated to improving the lives of their clients,” Mr Fox said. “There is no doubt that the AFA’s ambition of achieving great advice for more Australians is in good hands.”

Mr Philip Kewin, Zurich’s GM Retail Life & Investments noted that, despite the diversity of business models used by this year’s finalists, they all deliver a consistently exceptional customer experience.

“As the premier advice awards, our finalists have always been the vanguards and pioneers of the advice profession,” Mr Kewin said.

“This glimpse into the future of advice and advice practices reveals much diversity and innovation in the ways advice is being made more accessible, and the overriding focus on delivering an exceptional customer experience augurs well for the profession and the community overall,” he said.

The 2014 AFA Adviser of the Year and Practice of the Year will be announced with the support of Zurich at a Gala Dinner on Tuesday, 14 October 2014 at the AFA National Adviser Conference in Cairns.

The grand finalists are:

Adviser of the Year

• Catherine Robson, Affinity Private
• Eleanor Dartnall, Dartnall Advisers Pty Ltd
• PJ Byrne, Mr Insurance

Practice of the Year

• Complete Financial Balance
• Rising Tide Financial Services
• Robina Financial Solutions Pty Ltd

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Brad Fox

The Association of Financial Advisers (AFA) has announced the six finalists in the tenth AFA Rising Star of the Year Award (the Award), supported by ANZ Wealth. The Award recognises the best new advisers who provide quality financial advice, demonstrate a commitment to education, and make a valuable contribution to their profession and to their community.

AFA CEO, Brad Fox, said, “The Award continues to profile the most talented new advisers in the industry. The quality and the quantity of the nominations goes to show that the advice profession is in good hands, and will grow and develop to continue to help achieve great advice for more Australians.”

Each finalist will attend a full day judging process to be held in Sydney in front of a judging panel that includes ANZ Wealth’s General Manager for Advice & Open Market channels, Neil Younger and the first three winners of the award: Esther Althaus (2006), Chris Browne (2007) and Brad Fox (2008).

Mr Fox said, “A very strong part of the AFA’s DNA is the willingness to share with your peers and in this case, having three previous winners as part of the judging panel takes it one step further.  It is a great example of how the AFA Rising Star Award has achieved one of its key objectives envisioned ten years ago when it commenced – to attract and foster new talent towards a career in financial advice. We have seen, year after year, amazing new talent join the AFA through the awareness generated through the Award and our GenXt initiative.”

ANZ Wealth, Neil Younger said, “We are pleased to see that as we celebrate the tenth year of the Award, it continues to go from strength to strength.  This year, the judges have been overwhelmed with the standard of nominees and the outstanding contribution they make towards their clients, their profession and their community.”

Mr Fox said the Award is about profiling and encouraging the talents of advisers at the start of their careers and inspiring them to become leaders and innovators in the advice profession.

The 2014 Rising Star of the Year Award finalists are:

• Ben Nash, Successful Ways, NSW
• Benjamin Budge, My Wealth Solutions, QLD
• Catherine Wells, Plansure Solutions, SA
• James Jagodnik, Stanford Brown, NSW
• Phillip Thompson, Thompson Financial Services, VIC
• Samantha Robinson, Eluvia, VIC

This year’s judging panel includes:

• Esther Althaus, Financial Planner, Perspective Financial Services and 2005 AFA Rising Star Winner
• Brad Fox, AFA CEO
• Michael Nowak, AFA President
• Chris Browne, Financial Planner, Founder of Rising Tide and 2007 AFA Rising Star Winner
• Ben Harrop, Head of Strategic Accounts Management, ANZ Wealth
• Neil Younger, General Manager for Advice & Open Market Channels, ANZ Wealth

The Award winner will be announced at the AFA National Adviser Conference in Cairns, Sunday 12 October 2014.

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Brett Clark

The Association of Financial Advisers (AFA) and TAL have yesterday announced the finalists in the 2014 AFA Female Excellence in Advice Award (the Award).

The Award, which is offered annually, recognises female financial advisers who are making a significant contribution to their profession, their community and particularly to female clients.

AFA CEO, Brad Fox, said the Award is an important step in the continuous recognition of the achievements of women in financial advice.

“Showcasing the talents of female financial advisers is particularly important in the mission to increase the number of individuals, particularly women, who seek advice to gain appropriate superannuation savings, insurance and overall financial well-being,” he said.

“But it’s more than that. The Award is a catalyst to attract more women to become financial advisers and to bring their talents, including empathy and understanding, to the advice market place. We are incredibly proud of our finalists and all that they have achieved to this stage of their careers.”

TAL Life CEO Brett Clark said the job of shortlisting the final group proved to be difficult for the judges because of the very high standards of all of the semi-finalists.

“The finalists are all exceptional candidates and congratulations to each of them for making the final cut in what has been a highly competitive year for the Award. This year all of the semi-finalists attended a special two-day master class on leadership and development which they highly valued as part of the award program. All of the finalists are outstanding advisers and leaders in their own right who are delivering tremendous value for their clients and for the advice profession as a whole.”

The finalists for the 2014 Award are:

• Adrienne Rush, Bendigo Financial Planning
• Dominique Bergel-Grant, Leapfrog Financial
• Kate McCallum, Multiforte Financial Services
• Sarah Riegelhuth, Wealth Enhancers

The AFA Female Excellence in Advice Award is a joint initiative of the AFA and TAL with support from the Macquarie Graduate School of Management (MGSM). The winner of the 2014 Award will be announced at the AFA National Adviser Conference in Cairns on Tuesday 14 October 2014 and receive a full MGSM scholarship (valued at $12,000) to complete either a Postgraduate Certificate in Management or an Executive Education Leadership Development Program.

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Anne Fuchs

The Association of Financial Advisers (AFA) has partnered with PortfolioConstruction Forum to offer practitioner-focused investment content at the 2014 AFA National Adviser Conference to be held in Cairns, 12-14 October.

AFA Chief Commercial Officer, Anne Fuchs, said the partnership with PortfolioConstruction Forum will ensure that advisers have a clearer understanding of their obligations to clients with respect to investment recommendations. “The front-of-mind question for most advisers now is, what are my obligations as an adviser in this new world of best interests duty, where the practicalities remain largely unknown and untested? Advice being developed now around longevity risk is opening the door to innovative investment strategies that are very different to the old solutions and so we recognise a clear need to help our members protect the retirement savings of their clients.”

Ms Fuchs said many advisers are feeling uneasy about traditional strategic asset allocation and the AFA wants to encourage its members to think differently about model portfolios and their role in recommending them. “The best part about the investment content at the Adviser Conference this year is the realization of the need to live by the AFA theme for 2014, Innovate: Think. Create. Act. Advisers need to be thinking differently about how they invest their clients’ hard-earned savings so that clients have the really dignified retirement they aspire to have.”

ASIC Deputy Commissioner Peter Kell will also present at the AFA National Conference on a range of topics including putting forward ASIC’s view of the adviser role in the investment process. “Mr Kell will look at areas such as dynamic asset allocation and how advisers manage risk during an economic downturn,” Ms Fuchs said.

Technical experts from Perpetual and Australian Unity, who are the Australian market leaders in developing thinking about investment philosophy and advice strategy implications, will provide investment curriculum content. This will be moderated by Graham Rich from PortfolioConstruction Forum.

More than 80% of AFA Members include investment advice in their service solutions.

“When our delegates walk away from the 2014 AFA National Adviser Conference, they will have a much clearer idea about their Best Interests obligation, what it means to them, what it means under the law, what their investment philosophy could be and how they can best protect their clients’ money,” Ms Fuchs said. “This is market leading content and we are very pleased to make it available to our conference delegates.”

Register here for the AFA National Conference in Cairns from 12-14 October, or to view the program.

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Christine Hornery

Financial planner, Christine Hornery, CFP, director of FMS Group and Association of Financial Advisers (AFA) 2012 Female Excellence in Advice Award winner, has welcomed comments made by Australian Securities and Investments Commission (ASIC) Chairman, Greg Medcraft last week that financial literacy for children is a top priority.

Commenting on a speech[1] made by Mr Medcraft to the Australian Bankers’ Association (ABA), which listed educating the next generation through the formal education system as priority one of ASIC’s 2014–17 National Financial Literacy Strategy, Ms Hornery said it has often been difficult to educate her adult clients, let alone teach them to pass on financial literacy skills to their children.

“By way of example, some people do not seem to understand that credit cards are loans on which they pay very high interest,” she said. “These people feel that the cash available on their credit cards is their own money to spend as they like. If this is any indication of the type of lessons parents are teaching their children, then we have a serious issue coming our way in terms of debt.”

Ms Hornery therefore believes more attention needs to be paid to addressing these basic issues when children are at school. “Despite many well-intentioned attempts, our school system to date does not appear to have significantly addressed the practical financial responsibilities that an individual has throughout his or her lifetime,” she said. “Financial literacy isn’t about the theory, it’s about the practical – the information children will learn that will actually give them the knowledge and resources to make astute decisions around credit cards, car loans, home loans and budgeting.”

In his speech to the ABA, Mr Medcraft said that under ASIC’s MoneySmart Teaching program, more than 10,000 teachers have received face-to-face professional development and over 40,000 copies of teaching resources have been distributed to schools nationally. Under the action plan in the 2014–17 Strategy, he said ASIC’s goal is to train a minimum of 20,000 additional teachers, with the ultimate objective of teaching financial literacy from kindergarten to Year 12, in all 10,000 Australian schools.

Ms Hornery applauded the move, saying, “We need to start teaching our children that by planning and budgeting we can live the lives we want to lead for longer. Learning how to plan for the future is an invaluable skill.”

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[1] Medcraft, G 2014, ‘The 2014–17 National Financial Literacy Strategy: A speech by Greg Medcraft, Chairman, Australian Securities and Investments Commission [to] Australian Bankers’ Association (ABA) Broadening Financial Understanding Conference’ 3 September, viewed 9 September 2014,  http://www.asic.gov.au/asic/pdflib.nsf/LookupByFileName/National-financial-literacy-strategy-speech-published-3-September-2014.pdf/$file/National-financial-literacy-strategy-speech-published-3-September-2014.pdf

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Brad Fox

The Association of Financial Advisers (AFA) is urging members to encourage the public to take the next step to better engage with their financial affairs by becoming involved in MoneySmart this week.

MoneySmart Week, which runs from 1-7 September 2014, is an independent, not-for-profit national initiative promoting the importance of financial literacy. Held annually, it is designed to encourage all Australians to take simple steps to make a positive difference to their financial wellbeing.

AFA CEO Brad Fox said the AFA has a strong commitment to financial literacy at the consumer level and is encouraging AFA members to get involved. “Australia has one of the largest and safest financial systems in the world, but for the majority of Australians, it is very complex and difficult to understand,” he said. “MoneySmart Week is an excellent government initiative to drive awareness and direct Australians to the places they can go for help with their finances. Financial advisers can be one solution, but there are many other resources available to Australians which can help improve their level of understanding around things like budgeting, superannuation and taking control of debt.”

Mr Fox said the important factor to consider is that Australians need to feel confident that they know the basics around their financial situation. “We find that once people gain the basic knowledge around their own situation, they are more inclined to become more involved in taking care of their personal financial position. Giving back to the community is common practice for AFA members and MoneySmart Week is another great opportunity for them to help and engage with their local communities.”

Mr Fox said the AFA is currently developing a comprehensive financial literacy strategy to be launched in 2015. “This strategy will complement the AFA’s Your Best Interest initiative, which is aimed at engaging, entertaining and educating the Australian public about financial advice and financial advisers.”

The AFA will share more about their financial literacy program at the AFA National Adviser Conference in Cairns from 12-14 October 2014.

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Nick Hakes

The program for the Association of Financial Advisers (AFA) 2014 National Adviser Conference has been built around the AFA’s four learning pillars of professional development and leadership, which is a cultivation of practitioner-focused content and peer-to-peer learning.

AFA’s General Manager of Membership Services and Campus AFA, Nick Hakes, said at a big picture level the AFA is implementing a clear knowledge strategy focusing on the balance between the development of practical skills and technical knowledge for financial advisers. “We have created a professional development program that is a true reflection of the significance the AFA places on professional development in order to inspire and help our members to provide great advice to more Australians.”

As an extension of this strategy, the National Adviser Conference program is based on the AFA’s four learning pillars of adviser performance, advice strategies, business performance and professionalism and leadership.

“AFA National Adviser Conference delegates will benefit tremendously from the guidance provided by both industry experts, and, importantly, their practitioner peers who can demonstrate how to practically implement innovative measures into their own practices,” Mr Hakes said. “We want advisers to collect the tools and the knowledge they need in order to go back into their own businesses after our conference and implement change.”

Sessions at the AFA National Adviser Conference range from guidance on how advisers can sit across from their clients and know they are delivering their best, to insights on how to run profitable, sustainable advice businesses. “Delegates will learn some of the innovative, emerging technical advice strategies and know these strategies work because they have been adviser-tested,” Mr Hakes said.

The AFA’s learning pillars were introduced for the AFA’s National Roadshow in July. Almost all (99%) delegates attending the Roadshow indicated they would recommend the program to their peers.

“This feedback confirmed for us that we have struck the right balance in the delivery of professional development programs and gave us the confidence to apply the same learning pillars when building the curriculum for the National Adviser Conference,” Mr Hakes said. “Delegates will see high-value content coming from a variety of sources including advisers, licensees, manufacturers and academia, delivered in a variety of ways which take into account the different ways in which we all learn.”

Mr Hakes said the AFA has curated, over some time, content from members, partners and other stakeholders including government, academia and media to deliver the four learning pillars and has designed a professional development program that has resonated not only with AFA members but with the broader AFA community, including licensees.

“We want our members and our partners to be leading in terms of professional development and innovation within the broader community,” he said. “We want to see advice professionals reach their true potential. We also believe the AFA’s professional development program will be attractive to prospective members who will discover it is only one of the many benefits the AFA has to offer advisers in the brave new world of advice.”

To register for the AFA National Adviser Conference in Cairns from 12-14 October, or to view the program, please visit http://www.afaconference.com.au/.

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Philip Kewin

The Association of Financial Advisers (AFA) and Zurich Financial Services Australia (Zurich) have announced the semi-finalists in the 2014 AFA Adviser of the Year and Practice of the Year Awards (the Awards).

The Adviser of the Year honour was first awarded in 2003, as a joint initiative between the AFA and Zurich, and is acknowledged to be Australia’s premier advice award. 2014 represents a new chapter in the award, with the best individual adviser and best advice practice to be honoured separately.

AFA CEO, Brad Fox, said the decision to offer two awards reflected the evolution of advice, including new business models characterised by greater separation between entrepreneurial business owners and highly specialised client facing advisers.

“The standard of candidates for this year’s awards has once again been exceptional, and underscores the incredible job advisers are doing in changing lives for the better’” said Mr Fox.

Renowned for the rigour of the judging process, this year’s candidates are also being assessed on their efforts to improve the financial literacy of their clients, prospects and the community overall.

Mr Philip Kewin, Zurich’s GM Retail Life & Investments also acknowledged the quality of candidates this year, and believes it augurs well for the reputation of advisers overall.

“Aside from a strong commitment to client care and self-development, what stands out for me about this year’s candidates is the amazing innovation taking place in how advice is delivered, said Mr Kewin.

“Ultimately these candidates are leading the way in lifting the reputation of the advice profession and making quality advice accessible to more Australians,” he said.

The Semi Finalists for the Adviser of the Year Award are:

• Bill Bracey, Sydney Financial Planning
• Catherine Robson, Affinity Private
• David Clark, Clark Pacific Financial Services Pty Ltd
• Eleanor Dartnall, Dartnall Advisers Pty Ltd
• Finn Kelly, Wealth Enhancers & WE Private
• PJ Byrne, Mr Insurance

The Semi Finalists for the Practice of the Year Award are:

• Complete Financial Balance
• Complete Risk Analysis
• Lighthouse Capital Pty Ltd
• Rising Tide Financial Services
• Robina Financial Solutions Pty Ltd
• Tribeca Financial

The Semi-Finalists now proceed to the next stage of assessment, with three Finalists in each Award to be announced in mid-September.

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Brett Clark

The Association of Financial Advisers (AFA) and TAL have announced the semi-finalists in the 2014 AFA Female Excellence in Advice Award (the Award).

The Award, developed in 2011 as a joint initiative by the AFA and TAL and supported by the Macquarie Graduate School of Management (MGSM), recognises and showcases the talents and contributions of women in financial advice to their clients, community and their profession.

AFA CEO, Brad Fox, said the Award is a reflection of the AFA’s quest to continue to create and encourage positive change in financial advice, with more women being encouraged to enter the advice profession thus giving Australians more choice in who they seek advice from.

“The achievements of the women nominated, and the semi-finalists especially, really show that our profession can earn the recognition and respect of the public,” he said. “By taking part in the Award process, these women are showing how they are changing their clients’ lives. The more we can continue to showcase the value of their advice, the sooner more Australians will understand what financial advice is, what the process involves and how valuable it is to their own position. This is particularly relevant to Australian women where the levels of superannuation, insurance and financial stability are well below those of men.”

TAL Life CEO, Brett Clark said the calibre of applicants was exceptionally high, and the job of shortlisting the semi-finalists was a challenging one for the judges.

“TAL is proud to have jointly initiated this award with the AFA because it provides an opportunity for female advisers to not only be recognised but to showcase their skills and talent in the advice profession and with their own communities. At TAL we understand the benefits that diversity brings to all businesses and professions. The quality of the nominations this year again is really impressive and a great indication of the calibre of women seeking to make a difference in financial services.”

The semi-finalists will be invited to participate in a custom-designed, two-day Leadership Master Class facilitated by MGSM as part of the 2014 Award Program. Then on 15 September, six finalists for the Award will be declared, followed by the announcement of the overall 2014 winner at the AFA National Adviser Conference in Cairns from 12-14 October. The winner will receive a full MGSM scholarship (valued at $12,000) to complete either a Postgraduate Certificate in Management or an Executive Education Leadership Development Program.

The Award semi-finalists are:

• Adrienne Rush, Bendigo Financial Planning
• Dominique Bergel-Grant, Leapfrog Financial
• Kate McCallum, Multiforte Financial Services
• Julia Schortinghuis, Lighthouse Capital
• Katherine Hann, Alan Donald Financial Services
• Nadia Cassidy, Mercer Financial Advice
• Naomi Rosenthal, Tudor Investassure Pty Ltd
• Sarah Riegelhuth, Wealth Enhancers
• Shu-Yi Schulstad, InsureWealth Financial Services

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