Fiduciary duty ‘beefed up’ Fines for financial advisers breaching their fiduciary duty could increase dramatically, moving the current maximum fine of $500 up to $200,000 when new legislation is introduced next month. The Government wishes to amend the Corporations Act to explicitly include a statutory fiduciary duty for financial advisers operating under an AFSL, requiring […]
Financial Planners and the Future of Financial Advice Reforms Consultancy firm, Radar Results, has done a survey of financial planners, to gain feedback on the Future of Financial Advice Reforms, which are expected to be implemented in July 2012. The survey required answers to questions about the adviser’s gender, age and whether they own the […]
Past sale prices of financial planning practices are really not a good indicator of how much you should pay for them in the future. The past is the past, and if someone paid 3x, 3.5x or even 4x, the recurring revenue (RR) for a business previously, what relevance would that have for today’s purchaser? Very […]
Consulting firm Radar Results (Radar) has provided valuations to the financial planning industry for many years. It became apparent volume bonuses were to be securitized by the government as being an incentive paid by the product provider to attract funds under management (FUM) and hence, may be banned. The latest Financial Services Reform paper released […]
Your client’s interests must be placed ahead of your own under proposed legislation issued on 26 April 2010 by Minister Chris Bowen. The new reforms, which apply from 1 July 2012, will place advisers under the Corporations Act in respect to a financial adviser’s fiduciary duty. This is similar to the fiduciary duties and obligations […]
After Chris Bowen announced on 26 April 2010 new legislation will be introduced affecting commissions, trails, review fees, volume bonuses and upfront fees, Radar Results conducted a poll. Radar Results polled financial planners and other financial service industry people asking “How will Chris Bowen’s new laws (2012) affect your business plans?” We received 732 responses […]
Office of the Hon Chris Bowen MP Minister for Human Services Minister for Financial Services, Superannuation and Corporate Law THE FUTURE OF FINANCIAL ADVICE INFORMATION PACK MONDAY 26 APRIL 2010 To access the Government’s Future of Financial Advice reforms paper. Click on the below link http://ministers.treasury.gov.au/Ministers/ceba/Content/pressreleases/2010/attachments/036/Future_of_Financial_Advice_Information_Pack.pdf Message from the Minister The Government […]
Consulting firm, Radar Results is seeing more sellers of financial practices come to market, particularly larger sized firms. John Birt, Managing Director for Radar Results said “Currently our clients are looking at purchasing 10 planning practices which should sell for at least $5 million. We have found 5 of these practices since December 2009. ” […]
Insurance registers in high demand Life insurance registers continue to be in extreme demand from financial planners who wish to expand their business. These registers, commonly called “books of business,” would include life insurance, trauma or crisis cover policies and income protection. To date the main demand has been from capital city based advisers although […]
If you’re planning to sell your financial planning business you’ll need to be aware of some obvious and not so obvious deal breakers. Besides price and terms being the obvious ones, there are some surprises in store for the unwary seller. If you’re an Authorised Representative of an AFSL and looking to sell, Radar has […]
