MAGAZINE OF CHOICE FOR AUSTRALIA’S WEALTH INDUSTRY
www.moneymanagement.com.au
Vol. 35 No 18 | October 7, 2021
12
INFOCUS
Evergrande crisis
ESG
18
Impact investing
GENDER IN FINANCIAL SERVICES
Serving, not selling
Advisers to pay more for FASEA exam under ASIC BY LAURA DEW
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Attracting female talent WHILE statistics may show there is a broadly even gender split between male and females in the financial services sector, when you break the data down, the numbers tell a different story. In the financial advice sector, the proportion of female staff falls from 50.1% in the total finance industry to 31% and many are likely working in roles ‘behind the scenes’ such as HR or paraplanning rather than giving advice to clients. As a result, firms are taking it upon themselves to start offering initiatives to attract female staff such as mentoring schemes and flexible parental leave. Others are focusing on the graduate space and trying to convince female students of the benefits of a career in financial advice or investment management. These include the flexibility of the role, ability to build a deep relationships with clients and to set up your own business. In particular, the Financial Planning Association of Australia has received $1.5 million to offer scholarships to female students. Currently, too many students think that finance is a “less interesting career” compared to other options such as technology or law, according to Thuy To, senior lecturer at the University of New South Wales Business School. She encouraged financial advice firms to consider building relationships with universities via attending recruitment events, offering internships and being guest speakers.
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ADVICE
The Government has released exposure draft legislation and consultation documents for the Better Advice Bill, including an increase in the Financial Adviser Standards and Ethics Authority (FASEA) exam fee. The bill was introduced into Parliament on 24 June, 2021, and would cover areas including establishing a single disciplinary body and registration system for financial advisers, a single disciplinary and registration system for financial advisers that provide tax (financial) advice service and the wind-up of the FASEA into the Australian Securities Investments Commission (ASIC). Within the legislation, it said the exam run under ASIC would cost $948 compared to $594
under FASEA. It would also cost $218 for ASIC to review the marking of one or more answers to non-multiple choice questions. This would apply to those advisers who had not yet passed by the exam by the end of 2021 and those who needed to re-sit in 2022. Advisers to be registered as a relevant provider by ASIC would also need to pay a fee of $95. Other measures related to the exam included the removal of the three-month waiting period before being able to re-sit the exam and more flexibility to allow candidates to sit the exam in person, virtually or through alternative arrangements. Consultation was being sought on: • Setting the criteria for when Continued on page 3
Video and recordings to be future of financial advice BY JASSMYN GOH
THE future of advice will be using video recordings, video statement of advice (SoA), and advisers with an ability to service 200 to 300 clients, according to an adviser. Enlightened Financial Solutions chief executive, James Wortley, said the only way advice firms would be able to have scale and be efficient was through recording all meetings whether it be face-to-face or digitally as it would save time on file notes and was a form of evidence. “If you haven’t got a file note, you didn’t do it. It’s your word versus the client’s word but when you have a recording there, it really doesn’t matter,” he said. “I know the big licensees won’t like that, because video advice Continued on page 3
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