2020 the year that was

“Never let the opportunities of a Crisis pass you by.”

INTRODUCING THE THIRD REGULATOR

In 2019, it was called virtue signalling by Paul Forbes of AAN when CBA decided it should pre-empt any legislation and start the ball rolling on trustee verification. They wrote to licensees demanding their fee paying clients sign ‘their form’, which gives the trustee comfort that the client is aware of service fees.

CBA’s form ignored the annual fee disclosure introduced in 2014, and the bi-annual opt-in requests which has clients both agreeing the services they have been offered and the fees they pay. This action ignored every advice document (SOA or ROA) that fully disclosed fees and the application forms signed by clients to open accounts and pay a fee to the licensee!

In 2020, not to let a good crisis pass by, other product providers joined forces and became the Third Regulator in financial services by issuing forms to licensees seeking information on each client:

“Describe the services (including, at a minimum financial product advice) provided under ongoing advice fee, adviser fee-contribution and/or optional features fees advice fee arrangement with sufficient detail to enable BTFM to make an assessment of the reasonableness of the amount for those services.”

ASGARD ewrap

Since when did a bank decide if the service and cost I was receiving was reasonable? What qualifications does the assessor at the bank have to make the assessment? The banks and big corporates decided to be the THIRD REGULOR in 2020 by scrutinising advice services and fees and adding to the cost of advice for all Australians.

Summary of 2020

Some of our favourite financial planning news sites have put together lists of articles and adviser commentary from 2020. Here’s some links:

The 20 most popular articles in 2020 (firstlinks.com.au)

Investment learnings from the COVID-19 crisis (firstlinks.com.au)

Professional Planner: Top five podcasts from 2020 | Professional Planner

Professional Planner contributions: Top ten opinion pieces for 2020 | Professional Planner

Professional Planner feedback: Top ten letters for 2020 | Professional Planner

Professional Planner: Top ten stories for 2020 | Professional Planner

Third Regulator in financial services adds to the cost of advice in Australia

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