Chris Dastoor

A review that focuses on distribution models, conflicts and supervision in failed managed investment schemes is needed in the wake of the Shield and First Guardian collapse, according to a financial adviser who has written an open letter to Minister for Financial Services Daniel Mulino. It’s one of six recommendations made in the letter to help improve the advice profession.

The next tranche of Delivering Better Financial Outcomes legislation is due “shortly”, but Minister for Financial Services Daniel Mulino is unable to provide a timeframe, softening from earlier indications it would be released by the end of the year.

ASX-listed Sequoia Financial Group has denied it is transferring advisers out of its InterPrac licensee with the intention of avoiding mounting liabilities from the collapse of the Shield and First Guardian master funds. The concern has been raised by victims of the collapsed schemes who are worried about a repeat of the group using legal loopholes to avoid accountability.

ASIC has sued the asset management arm of ASX-listed licensee owner Fiducian Group over allegations of misleading and deceptive conduct about a now-closed ESG fund. Investors had raised concerns about investments into mining companies, which ran contrary to the values described in the PDS, while the fund continued to distribute such documents for nine years after concerns were raised.

FAAA has called for changes to external dispute resolution rules to assist consumers in making complaints against entities other than professional advisers, pointing to failures across the chain amid the collapse of the Shield and First Guardian master funds. Meanwhile, the association has pointed to a SIS Act provision that would allow funds to apply to the government for financial assistance for fraud-induced losses.

Shadforth has acquired Melbourne-based financial advice firm PMD Financial Advisers in the first of what may be a series of deals. The business intends to grow both organically and through M&A with the latter still very being dependent on acquirees willingness to buy into Shadforth’s values.

Entireti has re-tooled a managed account service it picked up during the acquisition of Australian Unity’s financial advice business, rebranding it as Salita Portfolio Services. The separately managed accounts offering is supported by the investment consulting capabilities of Evidentia Group’s Lonsec Investment Solutions.

Client satisfaction offers a compounding return for advice practices, as levels rise the longer the relationship progresses. However, high satisfaction doesn’t automatically prevent clients from leaving and research presented to the Netwealth Accelerate Summit showed how advisers can create loyalty that lasts.

Millennial and Gen Z consumers want to get financial advice from sources they trust, but that doesn’t automatically mean they’ll defer to a professional. With two thirds of funds under advice at risk of leaving practices in the intergenerational wealth transfer, advisers who step up now will build life-long relationships.

Mayfair 101 Group director James Mawhinney will be unable to promote or raise funds for financial products for a further 15 years after his restraint orders were extended. But despite the court finding he had a “willingness to adopt a reckless approach to the conduct of a financial services business”, Mawhinney still intends to appeal the decision.