News in Brief

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  • Australians Will Need to Work Longer;
  • Super Funds Increase Focus on Advice;
  • ASIC Bans Director;
  • AFA Life Company of the Year Awards

Australians Will Need to Work Longer

The level of social welfare predicted in 2055 by the Government’s Intergenerational Report is unsustainable, Financial Services Council CEO, Sally Loane has warned.

Responding to the report, released by the Federal Treasurer last week, Ms Loane said it was a clear signal to Australians that the status quo is no longer a viable option.

“By 2055, there will be 2.7 working Australians for every Australian over 65 compared with 4.5 at present. 70% of retirees currently receive a pension. This level of social welfare cannot be sustained,” Ms Loane said.

“The expectation should be that super is a replacement for the pension, not a top-up, and the age pension needs to be considered as a safety net for those who cannot provide for their own retirement.”

Earlier this month, Ms Loane outlined the 2015 policy position for the FSC, saying a stable life insurance sector was critical to reducing budget pressure arising from disability-related welfare costs.

Super Funds Increase Focus on Advice

A significant number of superannuation funds are now focusing on financial advice as a key member engagement and retention tool, according to Rice Warner.

A recently released report by the firm found that superannuation funds are now reviewing their in-house and outsourced advice models to determine the most appropriate combination in order to service and engage members.

Further, where advice is being offered, the report showed it is underutilised and that there is a clear opportunity for funds to redouble their efforts in delivering quality financial advice that addresses the demands of members.

“Quality, appropriate and engaging financial advice is looming as one of the most crucial and necessary requirements for Australia’s largest superannuation funds,” said Rice Warner Senior Consultant, Salvador Saiz. “Once funds have established an efficient advice model, they must do more to communicate the existence of their offer and value to their member constituents.”

ASIC Bans Director

The Australian Securities and Investments Commission has issued a 2 year ban to the founder of a financial advice business.

Director and Founder of the Charterhill Group, George Nowak, was issued the ban because he is an undischarged bankrupt. Mr Nowak applied for personal bankruptcy in July 2014. He is banned from providing financial services for the period of his bankruptcy.

ASIC said it was continuing to investigate the conduct of Mr Nowak and the activities of the Charterhill Group, which operated as a ‘one stop shop’, providing advice to clients on the establishment of SMSFs, rollover of existing superannuation funds into an SMSF, sourcing and purchase of investment properties, property management, insurance and taxation.

AFA Life Company of the Year Awards

The industry will gather in Sydney on Wednesday night to celebrate the latest achievements in the life insurance sector.

The Association of Financial Advisers/Plan For Life Life Company of the Year Awards recognise innovation and excellence in the provision of life and annuity products and services to financial advisers and their clients.

Along with the major product awards, riskinfo is proud to be a partner, with AFA and the Beddoes Institute, of the Client Service Team Awards, which celebrate achievement in underwriting, claims and business development services for advisers and their clients.

Attendees at this year’s ceremony will hear from special guest speaker, Andrew Gregory, the CEO and Managing Director of McDonald’s Australia.

Stay tuned to @riskinfonews on Twitter for live news from the event.