The Financial Adviser

64 Pages·2017·12.28 MB·English

THE FINANCIAL
Vol 21 No. 41 | APRIL 2017
An official publication for members of the Association of Financial Advisers
Change in AFA
Leadership
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AFA National
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Roadshow
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Adelaide Wednesday 19 July
Perth Thursday 20 July
Canberra Monday 24 July
Melbourne Tuesday 25 July
Sydney Wednesday 26 July
Brisbane Thursday 27 July
THE FINANCIAL Vol 21 No. 41 | APRIL 2017
An official publication for members of the Association of Financial Advisers
Welcome to the April edition of CONTENTS
The Financial Adviser Magazine.
It has been a busy start to the year for
Professionalism & Leadership
our community and it doesn’t look like
it will slow down anytime soon. 4 A lot could happen in a week, just look at the last one.
Recently at the AFA we have had the 5 On the couch with AFA CEO Phil Kewin
passing on of the AFA CEO baton.
8 More than a Decade of Change
I would like to take this opportunity to
11 Changes to insurance inside super
welcome our new CEO Philip Kewin,
12 Policy Update and Regulatory Developments
the team at AFA HQ are very excited to be guided by Phil’s
30 Update on National Financial Literacy Strategy
leadership as we continue to become a high engaged, adviser
driven professional body.
Member Feature
Also I would like to thank our outgoing CEO Brad Fox who has
20 Garry Bold - A Career of Change
achieved so much during his time with the AFA and made
working with the AFA an enjoyable experience. Brad will be 23 Darren Johns - Adviser of the Year 2016
missed by the AFA team and we all wish him the best of luck 38 Sue Viskovic - Your first step to surviving LIF
for the future ahead. 51 FChFP Feature
On the events front I would like to thank the 1,400 advisers
that attended the successful Genxt Connect Tour and to all our Adviser Performance
state communities who continue to promote our Communities
17 The evolution of an adviser’s role in the claims experience
of Practice through our state based events.
45 Multi-manager solutions free up advisers’ time to provide their clients a
On the policy front, our leadership team continues to advocate more holistic offering
on your behalf to ensure we grow as a profession and achieve 43 Cathryn Gross - Why we must innovate to help more Australians
outcomes that support you and your clients. Please go to page achieve great advice
12 to read the full Policy update.
Member Services & Campus AFA
Looking forward we are currently preparing to launch our
second Inspire Roadshow in association with TAL and the AFA 18 AFA adviser-led: Creativity, intellectual curiosity and new insights
Female Excellence in Advice Award. We will be travelling
around the country from 15 May – Thursday 25 May with an Business Performance
action packed development program. Come and say hello to
37 Throwing darts in the dark: the future of Trauma insurance
us in your state.
41 Getting clients to just do it!
Preparations are also underway with 2017 AFA National
Adviser Conference being held in the Gold Coast, 11 October Communities of Practice
– 13 October this year. We will be announcing the fantastic line
25 Relationships & Change
up of speakers and sessions very soon. It promises to be the
27 Leaders Forum Summit 2016 Wrap Up – Part 3
most relevant event in the advice community calendar this
49 AFA Inspire Celebrates International Women’s Day - #BeBoldForChange
year. Don’t forget the Early Bird rate is available to 30 June,
register now.
Events
Our efforts to close the gap between unadvised Australians
24 Genxt Connect Tour 2017
and financial advisers continues, with further exciting new
announcements on Your Best Interests (YBI) coming soon. We 31 AFA Awards
have a team of YBI experts ready to share relevant content 35 INSPIRE Roadshow
resources with you which will be announced very soon. 43 AFA 2017 National Adviser Conference
54 Life Company of the Year 2016
We welcome all feedback so please feel free to email me. I
hope you enjoy this issue of The Financial Adviser.
Community & Marketplace
55 AFA Foundation 2017
Karen Tinnelly
57 Pro Bono Financial Advice: the profession’s commitment to the greater
[email protected]
good of society
 @AFA_Voice
61 Mythbusting - Social Media Myths
The Financial Adviser APRIL 2017 3
Professionalism and Leadership //
BY MARC BINEHAM
AFA National President
A lot could happen in a week,
just look at the last one.
This quote by Julia Quinn seems so pertinent writing here. Last week we had the first Board
meeting for the year, the implementation of our Strategic Plan for next 2 years was revealed,
International Women’s Day around Australia was celebrated by our Inspire community, the
black-tie Life Company of the Year awards was held, and incredibly we have just appointed a
new CEO in Phil Kewin as Brad Fox has decided to step down after an amazing 4 years –
some week!
So let’s take a step back and remind ourselves why, as Simply Direct or Group insurance needs to measure
at the AFA we can have incredible weeks like this and up to community expectations by ensuring all
why we are so committed to the cause: underwriting is undertaken at the start of a policy, not
at claim time.
We passionately believe in the value of financial
advice to transform people’s lives. We believe with Professional Standards legislation
being recently introduced, this is an exciting time for
Our Board came up with this WHY statement and
our profession and will be a defining moment for our
hope you, like us, can relate and believe in this as well,
70-year-old association. It will help provide greater
as I see every day so many passionate people in our
understanding and appreciation from Australians to
profession, that this is what gets us up in the morning,
what financial advice is, what a financial adviser does,
what drives us - not the noise, not the negatives but
and the benefits financial advice can bring to them.
knowing that you can create positive changes in the
lives of your clients, this is a truly noble pursuit. I believe it will also be the beginning of a new wave of
growth in advice, and will coincide with attracting the
Culture - Over the last 2 years, we have seen rapid
brightest and best university graduates to our
growth of the AFA membership, and a focus of our
profession. For the ‘experienced’ advisers like myself,
new Board is to ensure membership engagement at
it can also be very daunting but we have always
grass roots level and our ‘culture’ that has been
adapted to the many changes in our profession over
ingrained in our DNA over last 70 years continues to
the years.
grow and flourish.
Importantly though whether you are young or old, as
Through our Communities of Practice, State teams,
we as we adapt to our changing environment, we are
policy committees, Ambassadors - we have over 400
in this together – as the AFA community – as members
volunteers, around 15% of our membership who
working together to make each other resilient, brave
actively believe in the AFA and the betterment of our
and innovative.
profession and adviser community, long may this
continue. Finally, it would be remiss of me not to take this time
to thank Brad Fox for the wonderful work he has done
Policy - The AFA has been supportive of recent
over the years, from his involvement with setting up
Government changes with Fofa, LIF and now
Genxt to this last 12 months dealing with Government
Professional Standards, being passed to provide
and others to get the best result possible for our
greater consumer confidence in the adviser
profession. A truly inspirational leader and advocate
community. There were of course parts we did not
for our profession, and my many thanks on behalf of
agree with and fought hard to obtain the best
 @AFA_Pres the AFA for the great work you have done.
outcome. Now though, and as we stated to the PJC,
we believe others in our industry need to also step up
if we want to continue to grow consumer trust.
4 The Financial Adviser APRIL 2017
Professionalism and Leadership //
BY PHIL KEWIN
AFA CEO
On the couch with
AFA CEO Phil Kewin
With the handing of batons, The Financial Adviser takes the opportunity to sit down with
incoming CEO Phil Kewin to talk about his move to the AFA, his vision for the future and
challenges ahead.
Phil what brought you to the AFA? conviction out of those 45 minutes than I had over the
previous 6 months. It completely opened my
PK: Firstly, I have always been a passionate believer in
perspective on how to be a good Adviser.
the value of dvice and the role of advisers. And as
consumers are faced with ever increasing choice and –
So you have actually walked in the
unfortunately – complexity in financial solutions, there
has never been a greater need for both. The upcoming shoes of our members already?
changes to Superannuation and Pensions alone are
PK: Absolutely. I feel I learned more in those few years
incredibly complex and would be hard for any layman
than I had in the previous 20. More about myself , the
to get their head around without expert help.
role of an adviser, the rewards and the challenges. It’s
On the life insurance side we know that claimants who amazing when you work for large institutions you
are being helped in that process by an adviser get really have no concept of the types of challenges there
better  outcomes. are in running a practice and how much time can be
consumed by many things you just take for granted. In
Ensuring more Australians get access to great advice
a small business, there is little room for error and
means we need a viable healthy growing advice
certainly no other departments or resources to call
profession, and with so much change on the horizon
upon from within.
for advice – and indeed most professions – advisers
will need support, they will need leadership and they Naturally you also learn more about the human aspect
will need an advocate. The AFA can be all of those and with clients and the true value of your advice. How
so this role is an exciting opportunity to help chart a powerful it can be to sit down with a client who feel
course which will position advisers for the future and, they have no direction and help them plan for
ultimately help individual customers and retirement and not feel guilty about taking holidays. Or
communities. it might be if they don’t change their habits and start
to build and protect their wealth, they won’t have
How much do you know about enough in a few years let alone have a comfortable
retirement. Knowledge and skill you take for granted
the AFA?
can be the difference between those people sleeping
PK: Obviously in my last role I was heavily involved in at night or being in a constant state of uncertainty with
the Association, particularly the Adviser and Practice of no plan in place.
the Year programs. Of course I have also been a
Of course, helping clients with claims is an extremely
member of the AFA for over 12 years, starting from
powerful experience. When you receive a hand written
when I actually ran my own advice practice. That is
note thanking you and describing how important that
when I learned the true value of being part of the AFA.
payment was in helping rebuild their life, it makes you
In my first year as an adviser, although I had been in so proud of this industry and what we do.
 @AFA_CEO
financial services for over 20 years I was looking at the
“how” of dealing with customers, objections and of What learnings from your time in a
course running a small business. I basically signed up
corporate environment do you bring
to every training course and conference available. After
about 6 months I had a lot of new technical to the role?
knowledge, but it wasn’t until I attended the 2007 AFA
PK: I believe the experience I’ve had in corporate,
Annual Conference that I actually found the “how” and
dealing with other institutions, fund managers,
the “why”. I still remember sitting in the “Meet the
associations, regulators and of course advisers puts
Professionals” session with Russell Collins. Seriously I
me in a great position to fill what promises to be a very
gained more sound bites, practical, passion and
The Financial Adviser APRIL 2017 5
Professionalism and Leadership //
challenging yet rewarding role. You need to have constructive Our Communities of Practice Leaders have done a great job
communication channels across the board. And you need to organising signature events this year and I encourage all to
understand the drivers of success and the challenges faced by participate and share. Of course the signature event is the AFA
both sides. So by understanding each other’s perspective, I think I National Conference in October and I look forward to seeing
am uniquely placed to encourage continued collaboration and everyone there.
partnership all round. Because that’s essential if we are to adapt to
change and prosper in the future. You talked about restoring the community’s
trust, what did you mean?
So how do you plan to do that , what’s your
PK: Trust is extremely important and is another one of those
vision as CEO?
things I feel really strongly about. The last 2 years in particular have
challenged the trust the community has in financial services but
PK: My personal vision is for our profession to move through this
not only that, trust within the financial services community. One
phase of constant scrutiny and come out the other side as a
example of poor or inappropriate advice is one too many, we all
Profession that is widely recognised as a positive contributor to
know that. There has been significant work done by all parties
the community, always acting in the customers best interest and
from advisers, licensees, regulators and the government but more
ensuring great outcomes for those customers. That’s what the vast
needs to be done.
majority of advised customers already believe, we just need more
customers to want to seek out the same experience and as a result We will continue to not only contribute to ongoing dialogue but we
see a vibrant and growing advice profession to meet those see our role as crucial to helping drive reform and restoration of
increasing needs. trust. Advisers have seen an increase in compliance obligations,
professional standards and remuneration through FoFA and more
There is a need to restore the community’s trust, in the whole
recently LIF. All advisers are supportive of increased trust but we
industry.
need to ensure this is supported by the rest of the industry if we
In terms of the AFA and vision for the future I am only one part of it. are to see true reform.
The AFA of it’s nearly 4000 members has a President and Board of
Directors elected by the members. They play a key role in the Where to from here?
success of the AFA and the community of nearly 400 volunteers all
PK: An exciting journey ahead. As our Genxt National Chair Ben
working together to create a base of knowledge, practical
Nash said in the last edition, “It’s a great time to be an adviser”. I
execution and sense of community.
am at week 1 in over 3640 weeks of AFA history. The AFA has
As an Association, we see the journey ahead from Association to always been a community for sharing and building a Profession
Professional body. We intend to capture the essence of the AFA together. My personal goal is to ensure our voice to the community
Community, it’s DNA, at the same time as partnering with advisers is a positive one, one of thought leadership, inspiration and
through the progression. Whether its providing mentoring professionalism in everything we do.
opportunities for new advisers, helping existing practitioners to
Ultimately, the AFA is here to support our members and ensure the
follow the education pathway through to professional standards clients best interests are always the number one priority. We will
or even working with those advisers with a wealth of experience continue to work with members to help them adapt to the
who are uncertain of the future for them and how they find and changing environment around professional standards and
navigate the pathway that is best suited to them. It is so important remuneration as well as sharing ideas around innovation and best
that we recognise and capture their skills and experience in any practice. It is an exciting period ahead and we have the rare
way we can, particularly so we can bring more new advisers into privilege of helping people to enhance their lives through great
the industry. advice. It’s a journey I’m looking forward to and hope you are too?
6 The Financial Adviser APRIL 2017
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Professionalism and Leadership //
BY BRAD FOX
Outgoing AFA CEO
More than a
Decade of Change
Outgoing AFA CEO Brad Fox reflects on his 11 years with the AFA.
With only 8 clients and just 3 months of experience in financial From Industry Association to
advice under my belt, I attended my first AFA event – a July
Professional Body
Practitioner Roadshow held at the Hyatt in Melbourne.
The AFA has come so far over these eleven years, and so have our
It was 2006 and the speakers included then-CEO Richard Klipin,
members collectively as a profession. Through 8 different Ministers
Jim Taggart (2005 AFA Adviser of the Year) and Esther Althaus
for Financial Services and more than 50 enquiries including
(the inaugural AFA Rising Star winner). It was memorable, especially
Parliamentary Joint Committees and Senate hearings, the battles,
the energy and enthusiasm of my now good mate, Jim. But even
arguments, debates and deliberations have delivered MySuper, FoFA,
more memorable was the vibe - the way older (some very old)
Life Insurance Framework and Professional Standards reforms. This
existing members were so welcoming and supportive of me as a
will have been worth the difficult journey if financial advice becomes
“newbie” adviser.
firmly established as a mature, trusted, revered profession.
People are the heart of the AFA At this stage, the profession is vulnerable. Like a garden, it needs
constant tending – watering, fertilising and weeding, and the
We all know the saying that culture eats strategy for breakfast. It did removal of threats to its growth. Each member shares this
that day. I was swept up into a close knit community that embraced responsibility.
new people, that made sure no one was left to stand alone in a
crowd. There was humour, there was intensity and focus, open
Uncertainty is fertile ground for innovation
sharing of ideas, of the tips and traps for new advisers. I left that
event “branded” AFA. I was convinced the people in the AFA, the The ecosystem for financial advice will continue to change at a
members, were going to champion and chaperone me throughout frighteningly rapid pace and that will bring periods of uncertainty
my career as an adviser. I joined that week. for individual advisers, for practices, for licensees, and product and
platform manufacturers. Against that backdrop, innovation and
At that time, the AFA was rebounding in relevance having lost its
experimentation will expose more Australians than ever before to
way in the 1990’s. Like the supporters of a footy team that lie
financial advice.
dormant when the team is going through consecutive seasons of
poor performances, the AFA community came back through the We will see coaching and counselling become the trademarks of
strong leadership of people like Bernie Toohey, the late Michael great advice, and life wellbeing become the holy grail outcome for
Murphy, Hugh Crawford and Joe Nowak. They used their own clients. This goes well beyond goals-based advice.
money, energy and belief to revitalise our association that began in
We will see the separation of advice from product sales open-up
1946. They had the foresight to hire a CEO, Richard Klipin, who led
like a chasm and I hope that the Corporations Act is reformed to
the AFA for eight successful years of regeneration, operating from
focus on advice rather than product.
an awful little office in Kent St that was not much better than a
shoebox with lights. We will see a majority of advisers preferring to remove themselves
further from conflicts and joining licensees that make no revenue
In reflecting on my eleven years with the AFA, the association has
from product deals.
continued to evolve and build upon the foundation stones laid by
successive Presidents and Boards. It was an honour to serve on the And through ongoing advocacy of the AFA, financial advice will
Board alongside President’s Jim Taggart and Denis Bateman, and eventually become tax deductible as a reward for achieving the
humbling to later serve as President with the support of Adam status of becoming a recognised, trusted profession that lives to a
Smith as VP, and subsequently be selected by Michael Nowak’s Code of Ethics and prioritises the greater good of society over our
board to be the Chief Executive from late 2012. own interests.
8 The Financial Adviser APRIL 2017
Professionalism and Leadership //
Outgoing CEO Brad Fox with AFA CEO Phil Kewin & AFA Board
The geek shall inherit the earth I especially wish to acknowledge Deborah Kent as the immediate
past-president for her selfless leadership, counsel, and strength. We
Fintech solutions will continue to challenge the nature of financial
might finally get time to go fishing now Deb.
advice. They have the potential to revolutionise financial advice
practices by improving the client experience at the front-end, and And most importantly, thank you to Monica, Teagan and James for
slashing back-office costs. Off-shoring and outsourcing will also patiently supporting me throughout more than 4 years of weekly
continue to expand. The momentum for these changes is travel commitments. It will be good to be back.
irresistible.
Financial advisers will increasingly be trained in coaching,
A last word
counselling and psychology with the technical work being the
realm of paraplanners and ever more effective software and
I look forward to our association becoming an
algorithms. After all, it is the human touch – the emotional
approved code monitoring body under the
intelligence – that has always set the best advisers apart.
Professional Standards regime. It is then that our
It is an exciting future full of opportunities for those that are
members will have the right to say that they
prepared to experiment, collaborate, and adapt. It is not a journey
for the feint hearted. belong to a recognised Profession – the one that
provides the personal, professional financial
Thank you advice that is the cornerstone to an Australians’
The AFA community has made a positive and lasting impact on me. sense of wellbeing and happiness.
Thank you to the people I have worked with at the AFA – to the HQ My very best wishes and support go to Phil Kewin
team, you’re awesome; to the many members that have
and Marc Bineham as they lead the AFA to this
volunteered in working groups, events, conferences, leading our
next achievement. Put your support behind them
communities of practice Genxt, Inspire, Leaders Forum,
Practitioners and the AFA Foundation – you are the heart pumping and row in the same direction. The destination is
blood throughout the association; to our AFA Award winners – worth the journey.
every year you excite and inspire me; to our key outsources
64Media, TPM, Kerry Chikarovski – you are part of the family; to the
Board directors and Presidents – you are often under-appreciated Brad served as the inaugural chair of Genxt from 2007,
for addressing the strategic challenges of the association in rapidly as an invited Board Director from 2008 to 2010, AFA
changing times. National President 2010-2012 and AFA CEO 2012-2017.
The Financial Adviser APRIL 2017 9
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