On a new episode of the ifa Show, Synchron’s general manager – compliance, Phil Osborne, said he believes that while both the regulators and stakeholders in the sector have “good intentions”, changes are not being properly thought out.
“Everybody’s got very good intentions… but nobody’s looking at what the consequences are and whether or not things can be done a little bit better than what they are,” Mr Osborne explained.
He reiterated a point he made earlier this month surrounding a proposal to “target a principles-based regulation framework”, in which he said it must be “considered carefully and not be a knee-jerk reaction for popular support”.
“While Commissioner [Kenneth] Hayne wasn’t looking for popular support, he was doing a good job, a lot of politicians jumped on it and said, ‘Right, fantastic. We are going to run with this and we are going to do this.’
“And all of a sudden, we’ve got that popular support thing rather than sitting back and saying, ‘Okay, where are we going with this?’”
Mr Osborne suggested the FASEA exam and current education standards – which many are now arguing could result in a mass exodus of advisers by 2026 – as an example of regulation pushed through without proper strategy.
Last month, he backed calls for an exemption for the requirement to attain a relevant degree for advisers with 10 years’ experience saying that the industry must learn from FASEA and “not mistreat” longer-serving advisers.
“Let’s be smart about it. I think that there’s been a lot of knee-jerk reaction,” Mr Osborne said.
“A lot of people that are making very well-intentioned and great ideas come forward, but they just haven’t stopped to consider what it actually will take for the practitioner to be able to implement that effectively and still actually meet their ongoing obligations to service their clients.”
Earlier this week, wealth manager WT Financial Group announced the acquisition of Synchon; a move that will see it become the largest non-institutionally owned financial adviser network in the country.
Listen to the full podcast with Mr Osborne here.
Consequences I have never known an Australian Government succeed where others have already failed.
The UK tried it. it failed. The Bushfires, the writing was on the walls yet we failed. Covid yes we failed to follow our health department’s response to a virus coming out of Asia. The floods OMG how many times is this going to happen to cost us hundreds of millions to clean up, yet we don’t implement a solution. The Marshall Government this weekend failed and the Sco-Mo Government will follow. It’s not we don’t know it. Its we fail to look behind and around to see what happened or what went wrong last time. We fail to ask what is the solution to prevent a disastrous outcome. If you keep doing the same thing over and over again don’t be surprised at the outcome.
Ever wonder why it is that anything put forward by government be this Labor or Liberal, either does not work, is over budget, dysfunctional, managed incompetently or just plain dumb in creation and implementation? Yet these geniuses, despite the overpaid bureaucrats and consultants are paid to cause further problems in an industry without listening to those in an industry? The result is simply a destroyed industry or less investment in Australia. Our only sectors appear to be mining and housing and everything associated with these.
Housing is now at an all time high, they speak of a problem with housing affordability. Not even considering the fundamental issue that caused this mess in the first place. This is the same regardless for any issue that involves government including healthcare and home finances.
Both sides of government are simply driven by ideology politically or are there to ensure their “mates” are looked after. Lets carve up the place for the haves and to hell with the have nots. Our politicians regardless of Labor or Liberal or Greens, have not a clue and are not worth the money we mug taxpayers are paying them.
These are politicians who are essentially illiberal in thought and Australia is succumbing to illiberalism. Where voting in a democracy does not assure you that you, your business, your family children and grandchildren will be looked after as once this country was a place where the word “mate” actually mattered. This is a dangerous trend. But where is your voice or that of your industry? Like many….crickets. Your associations seem to forget whom you as advisers represent. Ordinary people and their businesses. You are an advocate and you remain the most powerful voice for them. Your client matters. You matter. Please make sure you follow through and support a party that will put you and your family and clients first. This is not Labor or Liberal or Greens.
You very last sentence is 100% spot on.
These grub parties aren’t interested at all in what’s right for ‘consumers’ or the industry or even the economy for that matter. I am totally convinced we have the worst generation of politicians who are ONLY interested in the old adage – “What’s in it for them?” Frydenberg and Hume – and their recent predecessors have only been interest in setting up a path for their own benefit in the future – be it with the banks or with industry superfunds.
What angers me to a point of irrational behaviour is the fact financial advisers have had every avenue to any conflict of interest totally removed over the last 3 to 4 years yet these hypocritical, double-talk politicians are able to do whatever they want for their own future financial gain. It’s just atrocious and as Phil Osborne above has said, they’ve done it without any thought to the consequence to the adviser, the consumer and an entire industry.
I’ve never been so disgusted by a generation of politicians in my life.
Kenneth Hayne did not have good intentions. The only intention he could possibly have for removing life insuirance commissions is to drive people to get expensive insurance cover direct from the insurers which would mean that they would all have to pay 30 to 50% of their claim payments to his lawyer mates if they ever wanted any help navigating the claims process. Why didnt he recommend any sanctions against the bankers who caused all the problems in our industry?
I wonder how much he now has in his Cayman Islands bank acount?
Spot on Phil. Fasea, opt ins, fds etc waste of time and resources for no gain to the end consumer.
Unintended consequences seems to have replace the work incompetence – I guess no one is offended that way and everyone can meet their KPI targets. It seems to be everywhere.