Under current laws, accountants can provide advice on SMSFs without having to hold an Australian Financial Services Licence, but the proposed removal of the exemption under the FoFA guidelines will force accountants to obtain an AFS licence if they want to continue to provide advice around SMSFs and superannuation.

Philippa Sheehan, Managing Director of My Adviser, said that she was very pleased to be able to offer accountants a comprehensive solution to the changes.

“The package we have developed will go beyond existing legislative exemption. It offers Professional Indemnity Insurance to accountants and will also allow them to provide some strategic advice to clients on SMSFs, including on basic deposit products and cash management accounts.
“Our package is competitively priced, with a flat fee and the option of a weekly payment for Professional Indemnity Insurance and on-going support and education,” Sheehan said.

With the Institute of Chartered Accountants estimating that up to 10,000 accountants will be looking to take advantage of the current legislative changes to move into the sphere of SMSF advice, there is a significant opportunity for accountants to licence themselves sooner rather than later.

“At My Adviser, we feel very strongly that accountants should be able to get the correct licencing easily. We have no links with any bank or insurance company, and we see this as a competitive advantage as institutional aggregation continues in the industry.

“Better informed investors are increasingly seeking out services that are free of ‘product manufacturer’ influence, and our accountant licensing package will help accountants provide that unfettered advice,” Sheehan said.

She concluded by saying how important it is that accountants know there is an independent alternative in the market.

“Accountants don’t need to go through the licensing process alone, and they don’t need to align themselves with a large institution to get licensed. A non-aligned group, like My Adviser, is perfectly positioned to help accountants move their business forward successfully,” she said.

12 July 2012

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Mr Hutchinson brings over 22 years’ experience within the financial services industry to the role, with significant capabilities gained from a number of practice development and management positions.

Most recently, Mr Hutchinson worked as a Business Development Manager, with a focus on industry super, at Intrust Superannuation. Prior to this, Mr Hutchinson was State PDM for Queensland, Northern Territory and Western Australia at Financial Services Partners Ltd (FSP). In this role Mr Hutchinson successfully initiated strategic direction and leadership of the dealership within the three key states.

Before FSP, Mr Hutchison held a number of positions including six years with MLC Alliances in PDM roles.

My Adviser Managing Director, Philippa Sheehan, said of the appointment: “Our core driver at My Adviser is to provide the best of breed support for our advisers, and that means having quality staff as much as it means quality processes. Having a PDM of Michael’s experience joining our dealer services network will assist our Authorised Representatives to grow their planning firms while continuing to offer quality, professional financial advice.

“Michael truly understands the support and growth needs of a national dealer network. I am confident that with his expertise, our advisers will have even more freedom and support to do what they do best – adding value to clients.”

Mr Hutchinson said of his appointment: “Over the years I have fine-tuned my skills in assisting advisers to improve their revenue during tough times by focusing on the right aspects of their businesses. It is possible to be sustainable and profitable whilst delivering exceptional value to clients. I am looking forward to bringing that skill-set to My Adviser.”

Mr Hutchinson will officially start with My Adviser on 4 June 2012.

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The purchase increases Plan B’s shareholding in the My Adviser business to 93% and strengthens its foothold in the eastern states. The remaining 7% is held by My Adviser’s Managing Director, Ms Philippa Sheehan, and will be acquired by Plan B subject to My Adviser meeting agreed performance hurdles.

The transaction is a significant growth initiative for Plan B under the leadership of Chief Executive Officer, Mr Andrew Black. An increased presence in the eastern states of Australia has been an important part of that growth strategy.

My Adviser comprises 62 advisory businesses with 134 Authorised Representatives and has approximately $1 billion in funds under advice.

“We’ve always known that My Adviser represented a great opportunity and a strategic fit for us. We share the same fundamental values and client-focused approach,” said Mr Black.

He went on to say that the timing was particularly opportune given the current industry uncertainty in relation to FoFA.

“We’ve been relatively comfortable with the unfolding changes because, in most regards, they align with what we’ve been doing at Plan B for some time. This move gives us the chance to realise operational efficiencies and provide support and benefits for both Plan B and My Adviser” he said.

Philippa Sheehan also welcomed the move. “As far as we are concerned, completing the transaction ahead of schedule has delivered greater certainty in the face of a changing environment by combining resources with a highly respected and like-minded organisation sooner,” she said. “We’re very happy with the direction in which Plan B intends to move and believe that the combined group will benefit both our Authorised Representatives and their clients.” 

Sixteen years after establishing My Adviser, Michael Summers said the change in ownership represented an ideal time for him to step down from his current position as Chairman and to retire from all executive functions. Mr Summers is pleased that the company is in the capable hands of the next generation of managers to carry it forward. He will work with the business for a transitional period and will continue to be involved in industry associations.

The total consideration for the purchase of $1.733 million, which includes $0.49 million that is subject to future performance hurdles, will be funded from a combination of drawing down against existing bank loan facilities and from Plan B’s existing cash reserves.

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This message came in a presentation to the Gold Coast Chapter of the Financial Planning Association (FPA) which Ms Sheehan was addressing on the topic of ‘Who is making financial advice complicated?’ The presentation addressed the fact that the advice process appears to have become excessively complicated in recent years, with planners feeling that they had to meet a raft of different requirements including from ASIC, new regulations, the media and even the demands of different software types and their own licensees.

“I understand how difficult it can be to keep up with changing obligations while drowning out unnecessary noise, and believe me I know how loud it has become in recent years. However, we simply can’t afford to lose sight of why we’re here – and that is to provide our clients with holistic solutions to meet their very specific needs.”

“Licensees, now more than ever, should be supporting their planners, mentoring them and providing them with the tools to allow them to be strategists. This has been a key focus for My Adviser for the last twelve months and we are committed to continuing to provide this form of support for planners,” she said.

To that end, she counselled planners to pare back excessively complex financial plans, suggesting a five-step process that ensures the clients’ needs are kept at the forefront at all times. The five steps involve looking at: 1) goals & objectives, 2) a client’s personal situation, 3) strategy 4) product, and 5) cost.

Ms Sheehan went on to state that a holistic approach generally required more than what one product or service can offer. Accordingly, advisers should choose products for their clients with great care – and only when they meet the clients’ strategy rather than the other way around.

“Product sales people are in the business of selling products, not providing financial advice. Remember, you are the one who has to explain the situation when times get tough, not them,” she said.

Ms Sheehan also pointed out that, for many clients, their needs are relatively simple and do not call for over-engineered solutions that may put them at unacceptable risk.

“We are at a tipping point and there is a lot of confusion in the market but we have made great gains on the whole and we need to forge ahead with those and not let the current environment divert us from our course,” Ms Sheehan said.

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