Licensees focusing on adviser reviews
Australian financial services licensees (AFSLs) are placing greater focus on monitoring and supervision of their financial planner networks, according to Kate Humphries, general manager of Pathway Licensee Services.
Humphries said several of Pathway's clients - who had postponed adviser reviews in the past due to cost - are now asking for full audits of their planners.
"It could be that all of the focus for the last two years has been on investment returns, so I think businesses are getting their heads around what is quality advice being provided in the best interest of their clients," Humphries said.
"In order to measure how much change is in the process, they need to understand where they're at right now."
Licensees have also been asking for comment around the quality of the recommendations, rather than just ticking the Future of Financial Advice (FOFA) boxes, Humphries said.
"At a licensee level there is a large awareness that the underlying principles of FOFA - the spirit of FOFA - need to be aligned to what the advice network is doing," she said.
"So it's all very well to have a policy in place, but they really need to see that it is flowing through and that best practice is what is being delivered to their clients."
Recommended for you
Determinations by the FSCP since the start of 2025 are almost double the number in the same period of 2024, with non-concessional contribution cap errors and incorrect advice among the issues.
Whether received via human or digital means, financial advice is reportedly leading to lower stress and more confidence, according to Vanguard.
The new financial year has got off to a strong start in adviser gains, helped by new entrants, after heavy losses sustained in June.
Michael McCorry, chief investment officer at BlackRock Australia, has detailed how investors are reconsidering their 60/40 portfolios as macro uncertainty highlight the benefits of liquid alternatives.
