Five things you need to know this week – 4 November

By Drew Meredith.

1. The impending introduction of the individual registration requirement for financial advisers, which many saw as the first step to individual licensing has been delayed. Set to commence from 1 January 2023, with just a few weeks of normal business remaining, the program is now set to begin on 1 July 2023. Introducing following the Royal Commission it is the second step towards shifting registration to ATO systems.?
2. Michelle Levy has returned life insurance commission to the headlines, in further commentary following the interim Quality of Advice Review report. While acknowledging that commission are ‘reasonably likely’ to influence advice, Levy suggests they be retained but subject to an annual consent signed by the client that acknowledges the conflicted nature of the payment. Tahn Sharpe covered the issue here.
3. According to FPA chair Sarah Abood, the financial services industry may need as many as 1,100 advisers to join the industry every year to have any hope of delivering advice to the growing cohort of retirees. Some 137,000 Australians are expected to retiree by 2026, many of which will require some form of financial advice, something that the FPA confirms is nearly impossible given the dwindling numbers of authorised providers.
4. The regulator announced its key priorities for the 2023 year at the annual ASIC Forum in Sydney. Once again crypto currency is at the centre of their targeted sectors, due to the significant losses and unregulated nature of much of the industry. Also set to attract additional focus is ‘greenwashing’ and commentary around sustainable investment options along with ‘misinformation through social media’ with influencers clearly to remain in focus.?
5. Returning to insurance, ASX-listed group ClearView (ASX:CVW) has decided to take itself off the market, ending a strategic review by saying the company was no longer for sale. After offering due diligence to multiple potential buyers, management believe full value could not be achieved. On the other side, Insignia (ASX:IFL) has been hit with additional license conditions by APRA, due to concerns around the timely transfer of some superannuation accounts.?