FoFA reforms… The debate continues
By Renato Mota, General Manager, Distribution
I guess it shouldn’t be surprising that within our industry, which is built on providing advice, everybody has a view on what is going on within the industry itself. And they’re not shy about voicing it.
This is most evident when looking at the FoFA reforms. Industry forums, media outlets and publications are all a twitter with opinions on the best course of action in relation to FoFA. But at this point, with so many of the finer details of FoFA still to be finalised, anyone who tells you they already know how this story will end is getting a bit ahead of themselves.
I personally am supportive of anything that looks to address what I consider to be the two biggest issues in the advice market today:
- The standing of financial advisers within our communities.
- Access to holistic financial advice to all Australians.
Unfortunately, I see little within the FOFA reforms that will help with the above two goals, however I applaud the fact that we are looking for ways improve the financial empowerment amongst our society.
Whatever the final outcome, the FOFA process does reinforce the importance of regularly reassessing your business models and looking to improve the sustainability of your businesses in the face of external threats – be they regulatory or otherwise. At IOOF we are experienced with helping advisers face the sorts of challenges which the FoFA reforms are likely to generate. This means that we can help you start positioning your business in preparation for FoFA now – even before the final format of the reforms is known.
Opt-in and insurance commissions solution: Pursuit
Our flagship platform, Pursuit, already operates a fee-for-service model and we are putting in place tools which will help you monitor and manage the opt-in process for your clients.
Pursuit already allows you to offer your clients insurance both inside and outside super. In case the ban on insurance commissions goes forward we are already working with our insurer to adjust our insurance offerings.
Prepare your business now
Dealer groups which are already preparing for change and are willing to look at the positive side of the reforms will be the ones which thrive and grow after the reforms are put in place. Even though the reforms are not set in stone, now is the time to do the groundwork. Through our Business Affinity Program we have experts who can help IFAs truly understand their business so that they are prepared for the regulatory changes and are positioned to protect profitable revenue channels.
As you explore ways to maximise profitability within your business and change some of the time-consuming business processes, remember we have a number of services which you can take advantage of. They include paraplanning, transition support, marketing, technical and strategy services.
Keeping communication channels open
Here at IOOF, we are not in the habit of making decisions based on incomplete information and the debate on the FOFA reforms has in reality only just started. But I can promise you that we will be keeping the communication channels open as more technical information becomes available. We will keep you informed as we implement changes to products which will aid you through the reforms.
We also look forward to hearing from you as the changes become clearer. We are very interested in what additional support you would like from IOOF. If you’re ready to start working towards a FoFA-ready business model, please speak to your IOOF Business Development Manager.
I hope you have a great end of financial year,
Renato Mota
General Manager, Distribution
