Ones to watch

1. The FPA’s Compare the Pair

Just as anti-hero Dazza featured in this category last year and is now positioned prominently in the ‘Top five flops for 2006’, it will be interesting to track the path of the Financial Planning Association’s (FPA) latest campaign, ‘Compare the Pair’.

Initial adviser feedback suggests the print ads, which appear to be an attempt to trump the televised message of Industry Funds Services, may have hit the mark.

Of course, for the FPA’s campaign to be successful it will need to make consumers aware of the value of advice beyond super and not just sit well with planners.

2. Dennis Bateman

The appointment of Toowoomba-based Dennis Bateman as the new president of the Associationof Financial Advisers (AFA) came as a bit of a surprise to more than a few Sydneysiders.

The strong profile of the position’s other contender, Brian Boggs, placed him as a sure bet in the eyes of locals.

However, the robust election saw Bateman receive the most votes, making him the one to watch in the coming months for the direction in which he leads the association.

One thing’s for sure, the AFA board intends to continue the resurgence of the association, which has seen a 20 per cent growth in membership in 2006.

3. Anti-money laundering legislation

Over the past 12 months, the Anti-Money Laundering and Counter Terrorism Financing (AML/CTF) legislation has been the subject of extensive industry consultation, which produced two exposure drafts before reaching its current stage.

The Investment and Financial Services Association welcomed the final shape of the legislation, which is due for introduction into Parliament on December 7.

However, the impending introduction has caused concern among Australian financial services providers over issues relating to staff training and budgets, with one estimate for the cost of implementing the compliance procedures reaching $100 million.

Only time will tell how the much talked about bill will affect companies within Australia’s financial services.

4. Reverse mortgages

Numerous seminars, media briefings and news articles indicate that the industry considers reverse mortgages as ones to watch.

While selling reverse mortgages is still viewed with suspicion by many advisers, this is changing.

However, like anything that doesn’t provide a history to learn from, the effectiveness of this possible solution to funding an individual’s retirement will be determined in the future.

There is currently a legal focus surrounding the family members of those retirees who opt for a reverse mortgage but fail to consult their children of the decision.

Will these next of kin have legal rights against their parent’s financial adviser when they discover that the property they grew up in belongs to the bank?

5. AMPFP enforceable undertaking

The enforceable undertaking of AMP Financial Planning was the result of the Australian Securities and Investments Commission’s (ASIC) ongoing shadow shopping exercise, which detected shortcomings in the superannuation switching advice that was being provided.

As the largest scalp collected through the regulator’s review, the episode will serve as an important lesson to the rest of the industry, particularly if AMP’s reputation is damaged as a result.

However, the event also indicated the need for ASIC to encourage a greater level of dialogue surrounding the interpretation of legislation, instead of leaving companies to their own devices to do so.