Welcome to our August newsletter and, with winter winding up and tax returns on the way for some, there may be sunnier days ahead.
While the price of most goods and services continues to rise, the good news is the rate of increase is continuing to slow and the markets are beginning to breathe a sigh of relief. The Consumer Price Index rose 0.8% in the June quarter and 6% annually in the lowest increase since September 2021, and in some areas prices fell including domestic holiday travel and petrol.
Of course, the areas we’d all love to see prices coming down in are the weekly grocery bill, electricity prices and housing (whether buying or renting) – we may have a little while yet to wait until we see relief in these areas – but it was nice to see the Reserve Bank didn’t put rates up again this month.
My Gripe for the Month
This month I wanted to share with you an article I read in an on-line industry publication which discusses the Government’s proposal to relax the education and professional standards required so superannuation fund employees can provide financial advice to superannuation fund members. Interestingly it was written by a lawyer, not a financial advisor, and is spot on the mark.
There has been constant review / criticism / change / frustration / turmoil (etc., etc.) in the life of a financial advice professional over the past 5 years, with some of the required procedures having little to do with the quality of advice and reminiscent of the great British comedy series “Yes Minister”. But there have also been some changes for the better and a lifting of standards for some sections of the profession (including shutting down conflicted remuneration models) is high on the list of improvements – unfortunately the Government now wants to water down the standards and undo some of the good work that has been done.
As a licenced financial advisor, I had to complete a relevant degree, pass a 3 hour technical exam, and am required to complete a minimum 30 hours of relevant Continued Professional Development (CPD) training each year, with specific minimum for areas including professionalism and ethics, regulatory compliance, client care and practice and technical competence.
With the professional specialisations I hold in the areas of self-managed superannuation, estate planning and aged care advice I also have additional ongoing professional education requirements in these areas, and I logged a total of 96 financial planning CPD hours last financial year. This is on top of separate CPD obligations I have as an accountant / tax agent and as a mortgage broker (we often wonder when we have time to actually do our client work).
While I recognise not everyone has complex advice needs, and there needs to be a way people can access information, I just hope the Government is not opening the door again for conflicted financial advice models and there is a clear distinction made between product information and financial advice.
I’m not against people talking with their super fund (I’m actually in favour of it) – they can provide you with information about your accounts, options you may have within the fund, and factual information such as minimum pension payments and contribution caps. But please understand that, if you are discussing your superannuation with an employee of a retail or industry superannuation fund, unless they are a licenced financial advisor they do not have the education, experience, or the legal capacity to consider your overall financial position, needs and objectives.
On a more enjoyable subject
Heather and I are taking our first break in 5 years, and are heading off to Europe for a few weeks. Our last day at work before we go will be Friday 1st September, and we’ll be back on deck by Monday 16th October. During this time Stacey will be keeping an eye on the office, but the office will not be open every day.
We’ve had a flood of work come in already this tax season, and unfortunately getting started has been interrupted by regulatory requirement and a training conference. We’ll do our best to get as much done as we can before we leave for holidays.
