Dante De Gori, CEO of the FPA, shares an examination of the royal commission finding and how they could impact your practice.

1. How the Royal Commission
findings will impact your business
Presented by
Dante De Gori
CEO
Financial Planning Association of Australia (FPA)
6 March 2019

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Housekeeping

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Dante De Gori
CEO
Financial Planning Association
of Australia (FPA)
6
Meet today’s speakers

7. AGENDA
Opening Comments &
Overview
Royal Commission
FASEA
FPA SUPPORT
QUESTIONS

8. Opening Comments
and Overview
8

9. • Financial planning is of national importance
• An ageing population means demand will grow for advice
• Technology is an opportunity not a threat
• Financial planning as a profession of choice for future students is
growing
• Restore the respect, recognition and pride that financial planning
deserves
• Financial planning is changing those that embrace the change will not
only survive but thrive!
Opening Comments

10. 10
Overview

11. Over the last decade, many Australians have sought financial advice. Over the
same period, the financial advice industry has grown significantly.
The FAR jumped to over 28,000 at the end of 2018 (due to FASEA legislation
commencing 1 Jan 2019)
Market changes – banks divesting out of wealth management (advice)
The Productivity Commission has noted that in 2015/2016 the financial advice
sector was estimated to be worth $4.6 billion in revenue.
Overview

12. 12

13. 13

14. AFCA
Productivity
Commission
Royal
Commission
Business
Models

15. ROYAL COMMISSION

16. “The financial advice
industry is part way
through transformation
from an industry
dedicated to the sale of
financial products to a
profession concerned
with the provision of
financial advice”.
Source: Kenneth M Hayne Commissioner, Royal
Commission Final Report Volume 1 2019

17. To complete
the transition
we will be
required to do
the following:
(1) taking steps to deal
with those involved in the
charging of ‘fees for no
service’, and to ensure that
it does not happen again;
(2) reducing the conflicts of
interest that pervade the
industry; and
(3) introducing a credible
and coherent disciplinary
system for financial
advisers.

18. FINANCIAL ADVICE
1

19. 2.3 Review
Quality of
Advice Success
FOFA
FASEA
Royal
Commission
LIF

20. 2.2 Disclose lack of
independence

21. 2.1 Annual Renewal and
Payment
2.4 Grandfathered
Commissions
2.5 Life Insurance
Commissions
3.2 & 3.3 Restrictions on
Fees from Super
Remuneration

27. DISCIPLINE
2.8
Reporting
compliance
concerns
2.9 Identify,
inform and
remediate
misconduct
2.10 A new
disciplinary
system
2.7
Reference
checking &
information
sharing

28. CODE MONITORING AUSTRALIA

29. EDR AND
COMPENSATION
2

30. EDR AND COMPENSATION
2.9
Misconduct
by financial
advisers
7.1
Compensation
Scheme of
Last Resort
4.11 Co-
operation
with AFCA

31. FASEA

33. 33
66.8%
64.1%
47.8%
43.7%
32.2%
27.4%
26.0%
20.3%
17.1%
15.6%
13.9%
7.2%
FASEA exam preparation support
FASEA education requirements- what
do I need to do?
How does Recognition of Prior Learning
(RPL) work
FASEA Code of Ethics guidance
Preparing for assignments and exams
How to pick the right program for you
(online vs. face-to-face classes)
FASEA CPD templates
Funding your financial planning
postgraduate studies through FEE-HELP
Study techniques
FASEA professional year (PY) templates
Transition to university-level studies
Other
% Yes*Multiple answers allowed
N = 1020
EXAM PREPARATION SUPPORT WOULD BE THE MOST VALUED
The FPA is currently preparing a toolkit (FPA Return to Learn) to support members through the
transition. Which of the following content would you value in the FPA’s Return to Learn program?

34. 34

38. FPA SUPPORT

43. Questions and answers

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1 CPD point available
• Must complete feedback survey
available at the end of this session
• CPD details will be included in the
webinar resources email
Webinar recording and slides
• These will be included in the
webinar resources email
Thank you

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Outside the super square technical roadshow
• Touring nationally
• 3 CPD & complimentary
What makes a good company great?
• CPD Portfolio Construction webinar
45
Registration links will be in the follow-up email
You may be interested in

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Innovation Toolkit
• Workshops and resources to help your team innovate
• Download from our website
Banqer
• Supporting financial literacy in schools
• Refer a teacher today
46
Links will be in the follow-up email
You may be interested in

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