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Financial
Services
| All Publications | by Author |Next |
2010
"Will
the changes to borrowing arrangements by superannuation funds affect you
or your clients" by Fiona Sonntag
The Federal Government has made a number
of changes to superannuation law for the purpose of reducing the risks
for superannuation funds investing in limited recourse borrowing arrangements.
The legislation provides further guidance to trustees of superannuation
funds but will also prohibit or have the effect of limiting arrangements
which were previously allowable.
"Professionalism and Ethics in Financial Planning
Doctor of Philosophy Study 2009" by Dr June Smith
Victoria University
School of Law Abstract. The purpose of this study was to enhance understanding
of the ethical decision making of these financial planning participants
within this context. This study is therefore a significant one in what
is a relatively under-researched area of interest.
2009
"History
repeating itself? Lessons from the Storm Financial and Westpoint Group
collapses" by June Smith
There
are significant patterns in how financial
advice was given to consumers in both the Storm Financial and Westpoint
cases, writes June Smith. This article was
originally publised in LexisNexis
Butterworths Financial Services Newsletter April 2009.
"Trusts: A 21st Century Look at a Centuries Old Tool" by
Peter Bobbin
Without doubt trusts are the most favoured investment and business
vehicles today, yet most professionals have completed less than 40 hours
formal education in the law of trusts and taxation of these. In this detailed
paper, Mr Bobbin presents the fundamentals followed by discussion of stamp
duty, estate planning, family law, and taxation issues relevant to the
law of trusts. Useful 'Practice Points' are given throughout this article.
Updated February 2009.
"No time like the present" by Peter Bobbin
Many
firms will be busy helping clients reset their financial futures, but
before they begin they'll need to reorganise their own business to maximise
gains when better times arrive Peter Bobbin writes. Originally published
in Asset
Magazine February 2008.
2008
"Culture
of complaints" by Peter Bobbin
Clear
communication with clients is more important than ever in the market,
as even grieves can offer an opportunity to build better relationships,
Peter Bobbin writes. Originally published in Asset
Magazine December 2008.
"Enough
complaints to share" by Peter Bobbin
As
the credit crunch continues to bite, grievances against advisers will
probably increase as clients review their strategies and returns, but
where does the buck stop? Originally published in Asset
Magazine November 2008.
"A
lapse in trusteeship" by Peter Bobbin
The
concept of a dependant is anachronistic. I should be able to apply my
super as I wish. Professional super fund administrators are growing lazy,
leaving deceased members' dependants confused or, worse yet, forced to
bear the consequences of their failures, Peter Bobbin writes. Originally
published in Asset
Magazine October 2008.
"Beware
the trusty short cut" by Peter Bobbin
The
most common failing in the use a trust begins with the advisers who recommend
them. Judging by the mood of the times, a professional trustee and a settlement
fee substantially greater than $10 will be needed to earn the respect
of the courts, writes Peter Bobbin. Originally
published in Asset
Magazine September 2008.
"Fees
make a meal of your client's interests" by Peter Bobbin
Financial
advisers have a fiduciary duty to charge on a commission basis, Peter
Bobbin writes. This article originally appeared on the 28 August
2008 issue of Money
Management.
Right Topic Wrong Focus" by Peter Bobbin
The
consultation paper on superannuation shows that the government needs to
focus on the value of advice
and on encouraging households to boost retirement savings, Peter Bobbin
writes. Originally
published in Asset
Magazine August 2008.
"Super's
final frontier" by Peter Bobbin
Australian super-tax
laws that treat a company as a spouse no longer seeem so bizzare. Advisers
are coming to grips with the government's Better Super system, Peter Bobbin
writes, but unfortunately many of its absurdities and complexities are
still in place. Originally published in Asset
Magazine July 2008.
"Extreme super makeover" by Peter Bobbin
The complex, outdated
rules covering self-manged superannuation funds are crying out for reform
and a single authority should be given the role of DIY fund regulater,
Peter Bobbin writes. Asset
Magazine June 2008.
" Trusts:
A 21st Century Look at a Centuries Old Tool" by
Peter Bobbin
Without
doubt trusts are the most favoured investment and business vehicles today,
yet most professionals have completed less than 40 hours formal education
in the law of trusts and taxation of these. In this detailed paper, Mr
Bobbin presents the fundamentals followed by discussion of stamp duty,
estate planning, family law, and taxation issues relevant to the law of
trusts. Useful 'Practice Points' are given throughout this article.
Updated May 2008.
"Super's
final frontier" by Peter Bobbin
Australian super-tax
laws that treat a company as a spouse no longer seeem so bizzare. Advisers
are coming to grips with the government's Better Super system, Peter Bobbin
writes, but unfortunately many of its absurdities and complexities are
still in place. Originally published in Asset
Magazine April 2008.
"Gear
up for a lawsuit" by Peter Bobbin
It's a great time to
be in the super financial services profession, despite the fearful chatter.
More exceptions allowing super funds to borrow money for investments are
a big opportunity for the members. Don't let them give someone a new change
to sue you, Peter Bobbin writes. Originally published in Asset
Magazine March 2008.
"Simple
truth Saves" by Peter Bobbin
Advisers need to take care when communicating with clients - simply put
dumb it down. No more fancy words, slock marketing jargon or convuluted
nomenclature; be bluntly honest with clients in termins that even your
teenager would understand, Peter Bobbin writes. Originally published in
Asset
Magazine February 2008.
2007
"It
takes only one bad apple" by Peter Bobbin
If Australians' retirement savings are
to be safe, ASIC's new program to make it easier to weed out dubious advisers
must be followed up with new whistleblower protections writes Peter Bobbin.
Originally published in Asset
Magazine
"PI
insurer a must in large claims" - interview with Peter Bobbin
Large claims should never be settled without
getting the approval of your professional indemnity insurer. Peter Bobbin
explains how AMP’s recent High Court loss will affect advisers and
dealer groups, in this interview which originally appeared in
IFA
magazine 10-26 September 2007.
“Super
strategy needs super caution” by Mary Ferizis
It is well known that self-managed superannuation funds (SMSFs)
draw scrutiny from the Tax Office. But if you are adviser - and almost
all financial advisers are now working in the SMSF market - ASIC is concerned
with how you help client SMSF trustees document their investment strategy.
Mary Ferizis explains ASIC’s compliance obligations in this article,
which originally appeared in IFA
magazine’s
special SMSF Supplement, 27 August - 2 September 2007.
"Locking
in value" by Peter Bobbin
Few financial planning principals have their own business development
and succession strategies, and many do not realise the true value of their
client base, writes Peter Bobbin. Originally published in Asset
Magazine,
October 2007.
"Role
of industry standards in a principle-based regulatory regime" by
June Smith
A high-powered industry panel was convened at the 2007 IFSA conference
to discuss the role that industry standards play in defining and regulating
financial services industry participants. June Smith reports on the panel
discussion, including the difference between principles and standards,
the purpose of industry standards, common mistakes and practical implications.
Originally published in Lexis
Nexis Financial Services Newsletter Aug-Sept 2007
double issue.
"Sting
in the tail" by Peter Bobbin
Peter Bobbin examines the continuing crisis involving professional indemnity
insurance for financial planners, expecially in light of the recent High
Court decision in Cornwell’s case. He warns advisers that superannuation
claims can take years to come to the surface. Originally published in
Asset
Magazine,
July 2007.
"Keep
it simple" by Peter Bobbin
The changes to superannuation are complex, unfair and rushed. More time
is needed for people to make decisions about their long-term commitments,
according to Peter Bobbin. The so-called "simpler super" is
not an opportunity, but a limitation that never existed before. Originally
published in Asset
Magazine,
June 2007.
"See
here, understand?" by Peter Bobbin
If you think the indecipherable legal verbiage, written in microscopic
type and buried in obscurity on your customer documentation, will cover
your liabilities, think again. Peter Bobbin explains the importance of
disclaimers for financial planners and other professionals. Originally
published in Asset
Magazine
magazine, May 2007.
"Friendly
file casualty" by Peter Bobbin
Wise financial advisers keep careful file notes and they refrain from
blaming others for any shortcomings. Using recent case examples, Peter
Bobbin describes the harsh penalties for failure to keep proper file notes.
Originally published in Asset
Magazine,
March 2007.
"Bankruptcy
hits home" by Peter Bobbin
Now is a particularly good time to review wealth preservation strategies.
Changes to the Bankruptcy Act, proposed or adopted in 2006, have turned
much traditional asset protection thinking upside down. New ways of thinking
are needed if holding wealth to and beyond retirement is to be achieved.
Originally published in Asset
Magazine,
February 2007.
"
Death and super" by Peter Bobbin
Australian superannuation law was designed only with tax purposes in mind.
But simpler super can rob families of their estate-planning goals. Aged
under 25? Ignore your own super future, and embrace the super future of
everyone else by studying four law subjects: trust law, superannuation
law, tax law and litigation. Peter Bobbin explains. Originally published
in Asset
Magazine,
April 2007.
2006
"ASICzophrenia
threatens" by Peter Bobbin
The
Australian Securities and Investments Commission issued a discussion paper
in April 2006: Managing conflicts of interest in the financial services
industry. In this article, Peter Bobbin states that a fully developed,
I-don’t-trust-them, 'ASICzophrenia' leaps from the pages of the
discussion paper, particularly with reference to the dominant theme of
fees vs commissions, and he gives reasons why the paper should be withdrawn.
Originally published in Asset
magazine, July 2006.
"Breaking
the Barriers? by Peter Bobbin
The ultimate legal defence for
financial planners is informed clients able to make and take responsibility
for their own decisions. But it’s easier said than done. Peter Bobbin
shares his top ten tips for achieving clear, concise and effective communication
that is legally secure and liability limiting. Originally published in
Asset
magazine, May 2006.
"Compliance
when it really matters” by Denise Eastabrook and Peter Bobbin
Ensuring
your practice is compliant can result in real business benefits. The Argyle
Partnership’s practice director, Denise Eastabrook, and partner
Peter Bobbin explain the benefits of quality accreditation for professional
services businesses in general, and financial planning businesses in particular.
‘Comply or die’ can become: comply and thrive. Originally
published in Money Management’s “Argyle Advocate” column,
30 March 2006.
"I'm
in chains" by Peter Bobbin
A financial planning business that has not been built on bondage (restraint
of trade agreements) is like a fool and his money. Client-contact restraint,
when properly drafted, is a commonsense and practical tool to protect
and maintain a business. Peter Bobbin explains the lessons to be learned
from two recent court decisions: AMP v Manning and Koops Martin v Dean
Reeves. Originally published in Asset
Magazine
November 2006.
"Ineffective
principals." by Peter Bobbin
The
Financial Planning Association’s conflict of interest principles
are unlikely to prevent another Westpoint fiasco from happening. Peter
Bobbin explains the implications for financial planners and their compliance
officers. Originally
published in Asset
magazine, April 2006.
"Making
sense of Westpoint" by June Smith
The
collapse of the Westpoint group of companies will have wide ramifications
for several years to come for many industries, including the financial
services industry. In this article, Argyle Partnership partner June Smith
outlines the action taken against Westpoint to date, and the case that
is likely to be made against the financial planners who advised clients
to invest in Westpoint property projects. Originally published in LexisNexis
Butterworths Financial Services Newsletter, March 2006.
"Rotten
to the core" by Peter Bobbin
Financial services licensees can face a dilemma when they need
to warn clients about unprofessional behaviour of a departing adviser.
The ‘bad apple’ adviser often moves on to another licensee,
taking unsuspecting clients with them. Many dealers have refused to disclose
to a new licensee the reason for a "bad apple's" departure,
out of fear of a misrepresentation claim or following a threat of a defamation
suit. Peter Bobbin explains how the industry will benefit from ASIC’s
Bad Apples Project, and what disclosures licensees should make about fraudulent
or non-compliant behaviour of former employees. Originally published in
Asset
Magazine,
December 2006.
"Sum
of all tax fears" by Peter Bobbin
On April 6, 2006, the Australian Taxation Office was empowered with the
tax promoter laws. Peter Bobbin explains the new legislation, and argues
that a simple, poorly crafted or mistakenly drafted negative gearing plan
will fail the new law and make its adviser a tax promoter. The ATO view
of the tax promoter law is the only one that matters unless a federal
court judge rules otherwise, and there is potential for heavy-handed implementation.
Originally published in Asset magazine, August 2006.
"Superannuation
choice - can financial advisers get it right?" by June Smith
ASIC
released its most recent Shadow shopping survey on superannuation advice
on 6 April 2006. June Smith explains the implications of the survey results
for financial advisers, compliance managers and Australian financial services
licensees, both in relation to superannuation advice and to the quality
of financial advice overall. Originally published in LexisNexis Butterworths
Financial Services Newsletter, June 2006.
"Through
the looking glass" interview with June Smith
A
major new study into professionalism and ethics in financial planning
is being undertaken in 2006 and is set to refocus the industry on the
individual adviser and their relationship with clients. The PhD study
is being undertaken by June Smith, former General Counsel and General
Manager Policy and Regulation at the Financial Planning Association and
now a Law Partner with the Argyle Partnership. Originally published in
the FPA’s Financial Planning magazine, June 2006.
"What
Price Advice" by Peter Bobbin
New rulings put the onus on financial planners
to tread carefully with clients, especially those with small sums. Peter
Bobbin explains the lessons learnt from the recent ASIC/AMP Financial
Planning enforceable undertaking, and concludes that the undertaking also
raises more questions than it answers. Originally published in Asset magazine,
September 2006.
"Where
the buck stops" by Peter Bobbin
While ASIC is happy to tell us where to invest our tax refund,
there is an irony in the fact that the ATO refuses to answer questions
about our self-managed super funds. Since 1999 the ATO has had responsibility
for the prudential management and regualtion of SMSFs, and yet it refuses
to provide private and binding ruling support. Peter Bobbin explains why
there needs to be an urgent Senate inquiry. Originally published in Asset
Magazine,
October 2006.
2005
"Association
Management: A Professional Evolution" by June Smith
Like other occupations,
such as nursing, policing and financial planning, the occupation of association
management is moving towards new and important considerations of what
it means, in both an ethical and professional sense, to be an Association
Executive. Can Association Management become a recognised profession,
with Association Executives as the members of that profession, and what
does this mean? In this conference paper, originally delivered to the
AuSAE 2005 National Conference in May 2005, June Smith considers what
are the key features of a profession, what it means to be a professional,
and how an occupation evolves into a profession.
"
Client ownership: dealer vs planner" by Peter Sardelic
For
planners who have entered into a dealer representative relationship on
the understanding that the planner owns the client, the moment of truth
arrives when the representative arrangement ends. Planners want to be
sure that they are able to transfer their clients should the situation
arise, whether to a new dealer group, where they obtain their own licence,
or if they sell their business, to an adviser who belongs to a different
dealer group. In this article, partner Peter Sardelic explains why a dealer
representative agreement is so important. Originally published in Money
Management, 16 June 2005.
"Don’t
end up as an ASIC statistic", by Christina Kalantzis
With a shadow shopping campaign already under way, and an ASIC quality
of advice survey expected in the next 12 months, financial advisers must
ensure their practice is in order. In this article, Christina Kalantzis
gives practical tips for preparing your business, under the headings of:
shadow shopping, risk management culture, compliance culture, terms of
engagement and peer review. Originally published in Money
Management’s
"Argyle Advocate" column, 25 August 2005.
"Empty
hallways: don’t let you business lose clients to departing staff"
by Peter Sardelic
Well drafted employment contracts can
prevent your practice being raided by former employees. Using the financial
services industry as an example, partner Peter Sardelic reveals how principals
can protect their business using legal restraint provisions. Originally
published in Money
Management 21 April 2005.
"Heed
your own advice” by Peter Bobbin
Many financial
planners are too busy planning for everyone else’s retirement to
think about their own succession plans. Planning for a retirement involves
identifying current risks and ways of addressing these. Start today and
start by examining the core question: who owns the client? The answer
to this question will have profound taxation and other implications. This
article originally appeared in the Dec 2004/Jan 2005 issue of Asset
magazine.
"If
it looks like a duck ..." by Lisa Chambers
Although the disclaimer has become the darling of the commercial world,
its purpose and effect are generally poorly understood. This article,
by solicitor Lisa Chambers, examines disclaimers in the financial services
context. It originally appeared in the February 2005 issue of Asset
magazine.
"Marriage
break-up: avoiding a super split with your client" by Nabil Wahhab
Super splitting on marriage breakdown was thought to be easy. A simple
process of valuing the superannuation entitlement and dividing it in two.
This is the easy part. The difficult part is when clients do not receive,
or are not advised, to obtain financial and tax advise. This article,
by senior associate Nabil Wahhab, originally appeared in Money
Management’s
"Argyle Advocate" column, 3 February 2005.
"No
to a desperado ATO” by Peter Bobbin
Powers
enshrined in a new tax promoter law don’t do anybody any favours.
The new rules, found in the Tax Laws Amendment (2005 Measures No 6) Bill
2005, are aimed at all who dabble in taxation matters, including financial
planners. In this article, originally published in the October 2005 issue
of Asset
magazine,
Peter Bobbin explains why we do not need the new law.
"NSW
payroll tax case has implications for financial services organisations"
by June Smith
The
decision of the NSW Supreme Court of Bridges Financial Services Pty Ltd
v Chief Commissioner of State Revenue could expose some Australian financial
service organisations to payroll tax for amounts paid to authorised representatives
by way of commissions, brokerage and fees. In this article, Argyle Partnership
partner June Smith explains that the decision raises questions about what
constitutes an adequate financial planning model and the language used
in standard dealer/representative agreements. Originally published in
LexisNexis Butterworths Financial Services Newsletter, September 2005.
"One
down, one to go" by Peter Bobbin
The professional indemnity (PI) insurance pricing crisis may be over,
but a new breakdown looms. There is a lack of understanding of the protection
given by PI insurance. It is more than just an FPA membership requirement.
It goes well beyond a licence condition. PI insurance must be viewed as
part of the compliance and risk management programme of the financial
planning business. In this article, originally published in the May 2005
issue of Asset
magazine,
Peter Bobbin discusses the particular terms to look out for in your PI
insurance policy, and concludes that PI insurance is no substitute for
a culture of professionalism.
"Please
stop super whining," by Peter Bobbin
Some advisers
are getting too excited about the possible tax avoidance issues associated
with the transition to retirement strategy (TTRS). TTRS allows people
to access their superannuation as an income stream, even when they continue
working past age 55. The client’s dominant purpose is adopting TTRS
is not to gain a tax advantage; it is to establish a series of income
streams. In this article, Peter Bobbin explains how TTRS will not usually
attract Part IVA of the Income Tax Assessment Act, and why a rush to the
ATO for its comments are not in the client’s best interest. Originally
published in Asset
magazine, November
2005.
"Proposed
new professional standards on managing conflict of interest for financial
planners" by June Smith
In
April 2005, the Financial Planning Association of Australia released draft
principles designed to assist financial planners in managing potential
or perceived conflicts of interest that might arise when providing financial
product advice under the Corporations Act 2001 (Cth). Argyle Partnership
partner June Smith explains the main legal and professional obligations
under the new standards. Originally published in LexisNexis Butterworths
Financial Services Newsletter, July 2005.
"Put
a stop to ex-employees stealing your clients" by Peter Sardelic
All dealer groups
confront similar issues when an adviser leaves the business. Most importantly,
how to you prevent your former employees from taking your clients with
them? In this article, partner Peter Sardelic explains how dealer groups
can protect themselves from client poaching. Originally published in Money
Management’s
"Argyle Advocate" column, 24 February 2005.
"Setting
the record straight" by Peter Bobbin
Client transfers
are a source of resentment in the financial planning industry. The key
is to get the Authorised Representative/Australian Financial Services
Licensee agreement right. The single most secure way to protect client
relationships is in co-operation with the dealer, incorporating realistic
restraints and confidentiality principles, all backed up with clear engagement
and disengagement procedures that dovetail with an understanding of the
way the business operates. Originally published in Asset
magazine, June 2005.
"Stop
being so critical” by Peter Bobbin
Do
financial services providers deserve being lumped in with used car salesmen?
In this article, Peter Bobbin argues that the public understands that
advisers act on behalf of another to whom they owe a representative duty.
He explains why following ASIC’s Super Switching Advice: Questions
and Answers without proper context will not be in the client’s best
interest. Originally published in the September 2005 issue of Asset
magazine.
"Sweet
deals: a piece of the pie for staff" by Peter Sardelic
Offering staff a share of your practice may
improve retention levels and support your succession plan. Peter Sardelic
explains how an employee share plan can be a tool to retain key advisers
within a financial planning firm, and perhaps even deal with ownership
and management succession. This article, which originally appeared Money
Management’s
"Argyle Advocate" column (15 September 2005), contains details
of the issues to consider, together with plain English explanations and
examples.
"The
Right protection," by June Smith
Directors and
officers of AFSL licensees need to be able to conduct their duties without
worrying about their personal liability. So what protection can companies
offer? June Smith explains the relevant protections under the Corporations
Act, and issues arising from terms of engagement or appointment for executive
or non-executive directors, directors’ and officers’ insurance,
and deeds of access and indemnity. Originally published in Money Management’s
“Argyle Advocate” column, 10 November 2005.
| All Publications | by Author | Next |
