AdviserVoicescaled advice Archives - AdviserVoice

Rubik targets scaled advice market

Tue, 19 Feb 2013 20:35:44 +0000

Rubik Financial Limited, the ASX-listed global provider of financial technology and software, has announced the expansion of its product suite in the growing scaled advice market with the conditional agreement to acquire Provisio Software.

Provisio is a market leader in the scaled and online advice markets. Its client list includes many of the largest industry superannuation funds such as AustralianSuper, HESTA and LUCRF Super. Provisio has also developed a hosted platform for the provision of scaled advice for both the institutional and independent financial advisor (IFA) markets.

The acquisition of Provisio will place Rubik as a market leader in the provision of scaled wealth advice software in the superannuation fund market. This will complement its existing leadership position in the institutional market for comprehensive wealth advice software.

Rubik sees advantages that come to its existing institutional customers as a result of this acquisition and believes that components of the COIN software platform will enhance the solutions currently being provided to Provisio’s customers.

Mr Craig Coleman, Chairman of Rubik, said, “We have been evaluating the leading scaled advice software providers in the market as we believe this will be a growing area given the changes accompanying Future of Financial Advice (FoFA) reforms.

“In acquiring Provisio, we will expand our overall advice offering, allowing us to leverage our strengths in COIN’s financial planning software offerings, as well as take a leadership position in this growing scaled advice market.”

The acquisition will see Mr Cameron O’Sullivan, current CEO of Provisio Software and Mr Jye Tucker, current CTO of Provisio, join Rubik’s Wealth management team. It will also provide institutions and IFAs alike with the ability to access Provisio’s scaled advice platform as well as the complex advice solution of COIN Software.

Alongside the acquisition, Rubik has announced that it has entered into a placement agreement with the Wyllie Group, an existing shareholder of Rubik, which will provide enhanced flexibility for further acquisitions. There will also be a reorganisation of the group that will see the promotion of Mr Wayne Wilson, Managing Director of Wealth, to report directly to the Board.

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ASIC releases key FOFA guidance

Thu, 13 Dec 2012 20:50:51 +0000

ASIC has released final guidance for two aspects of the Future of Financial Advice (FOFA) reforms – the best interests duty and scaled advice.

The regulatory guides have been produced after extensive consultation with industry and other stakeholders.

ASIC also provided an update on its proposed guidance for the FOFA conflicted remuneration provisions.

Best interests duty
‘Consumers expect financial advisers to act in their best interests when giving them personal advice,’ ASIC Commissioner Peter Kell said.

ASIC’s final guidance on the best interests duty covers:

acting in the best interests of the client
satisfying the ‘safe harbour’ for the best interests duty
providing appropriate personal advice, and
prioritising the interests of the client.

The guidance is in an update to Regulatory Guide 175 Licensing: Financial product advisers – conduct and disclosure (RG 175).

Scaled advice
‘A key objective of FOFA is increasing access to good quality scaled advice,’ Mr Kell said. ‘Many consumers want specific advice on a single issue or a limited number of issues, not a comprehensive financial plan’.

ASIC has provided specific and practical guidance and examples about giving scaled advice while complying with the best interests duty.

It includes worked examples of scaled advice by:

banks
general insurers
superannuation funds
financial planners
stockbrokers.

The guidance is in Regulatory Guide 244 Giving information, general advice and scaled advice (RG 244).

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ASIC consults on FOFA reforms

Thu, 09 Aug 2012 21:40:24 +0000

ASIC has released consultation papers containing proposed guidance for two aspects of the Future of Financial Advice (FOFA) reforms – scaled advice and the best interests duty.

The work seeks to promote confident and informed investors and financial consumers, noting the value good financial advice can provide to consumers in helping them make important financial decisions.

ASIC Chairman, Greg Medcraft, said: ‘FOFA contains significant reforms intended to bring about real changes in the way financial advice is provided. These measures aim to improve the standard of adviser conduct and improve engagement by retail clients with advisers and advice.’

ASIC’s proposed guidance on the best interests duty covers the following areas:

acting in the best interests of the client
satisfying the ‘safe harbour’ for the best interests duty – including providing guidance on each element of the safe harbour
providing appropriate personal advice; and
prioritising the interests of the client.

ASIC’s proposed guidance on scaled advice will apply to all industry sectors, including super, financial planners, and banks and insurers, and includes practical guidance and examples about giving scaled personal advice, as well as practical examples about giving factual information and general advice to clients.

ASIC’s proposed guidance in this area indicates:

All advice is scaled to some extent – advice is either less complex or more complex along a continuous spectrum (i.e. there are not two categories of advice ‘scaled’ and ‘holistic’).
In general, the same rules, including the best interests duty, apply to all personal advice, regardless of the scope.
It is possible to provide less complex advice in a way that is consistent with the best interests duty and the law generally.

To read the consultation papers, click here.

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