Original article by Luke Housego
The Australian Financial Review – Page: 20 : 23-Apr-19
A survey of more than 1,000 Australians has found that 30 per cent would be willing to receive financial advice from ‘robo-advisers’. The survey was commissioned by consulting firm Thinque, with company founder Anders Sorman-Nilsson suggesting that consumers have become less willing to trust human financial advisers as a result of the banking royal commission. Around 80 per cent of respondents stated that financial services is the sector in which they are most worried about digital fraud.
THINQUE, IRESS WEALTH MANAGEMENT SOLUTIONS (RSA) PTY LTD, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY
Original article by James Eyers, Elouise Fowler
The Australian Financial Review – Page: 17 : 21-Mar-19
Westpac CEO Brian Hartzer expects banks to focus on using automated solutions to provide personal financial advice in future, due to the high cost of providing such services. Hamilton Wealth CEO Will Hamilton agrees that so-called robo-advice may be the only option for banks if they are to continue to offer financial advice on a large scale. Hartzer adds that consumers will still be able to pay for bespoke personal finance advice via boutique firms.
WESTPAC BANKING CORPORATION – ASX WBC, HAMILTON WEALTH MANAGEMENT PTY LTD, VIRIDIAN ADVISORY PTY LTD, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, BT FINANCIAL GROUP PTY LTD, KORDA CAPITAL, SIX PARK
Original article by James Frost
The Australian Financial Review – Page: 1 & 16 : 20-Mar-19
Westpac will cease serving its existing personal financial advice customers at the end of June, after striking a deal with Viridian to exit the sector. Westpac CEO Brian Hartzer concedes that its personal finance advice business has not been profitable for some time, and increased regulation was a major factor in its decision to withdraw from the sector. Westpac faces restructuring costs of $250m to $300m, while about 900 full-time equivalent employees will be impacted by the decision to exit financial advice. Westpac expects the move to result in annual savings of $280m by 2020.
WESTPAC BANKING CORPORATION – ASX WBC, VIRIDIAN ADVISORY PTY LTD
Original article by Roy Morgan
Market Research Update – Page: Online : 8-Feb-19
Financial intermediaries (including mortgage brokers and financial planners) currently account for the distribution of 35% of the total value of the major financial products. A number of the recommendations of the Financial Services Royal Commission relate to mortgage brokers and financial planners and if adopted, are likely to negatively impact their usage, particularly as it relates to borrowers rather than the lenders paying fees. Financial planners are also likely to be impacted by the need for greater fee disclosure, clarification of independence, improved focus on the best interests of the customer and the need to provide service for any fee involved. These are some of the latest findings from Roy Morgan’s Single Source survey in the 12 months to August 2018, which is based on in-depth interviews conducted face-to-face with over 50,000 consumers per annum in their homes, including detailed questioning across all aspects of investing, borrowing, insurance and banking.
ROY MORGAN LIMITED, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY
Original article by Joyce Moullakis, Ben Butler
The Australian – Page: 15 & 18 : 23-Jan-19
AMP could face a board spill at its 2019 annual meeting under the ‘two strikes’ regime, after more than 61 per cent of votes cast at the 2018 meeting rejected its remuneration report. The election of chairman David Murray is also uncertain, with at least two institutional investors said to be planning to vote against the resolution. They include Hamish Carlisle of Merlon Capital Partners, who opposes the election of Murray and non-executive director John O’Sullivan.
AMP LIMITED – ASX AMP, MERLON CAPITAL PARTNERS PTY LTD, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, RESOLUTION LIFE GROUP LIMITED, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, CREDIT SUISSE (AUSTRALIA) LIMITED, AUSTRALIAN COUNCIL OF SUPERANNUATION INVESTORS INCORPORATED, ABERDEEN ASSET MANAGEMENT LIMITED, IOOF HOLDINGS LIMITED – ASX IFL, AUSTRALIAN ETHICAL INVESTMENT LIMITED – ASX AEF, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, FEDERAL COURT OF AUSTRALIA
Original article by Misa Han
The Australian Financial Review – Page: 15 : 6-Dec-18
Merlon Capital is among the AMP shareholders that oppose the sale of its life insurance business. However, AMP CEO Francesco De Ferrari says the $3.3bn deal will proceed, arguing that the wealth manager lacks the global scale to compete with much larger international rivals in the life insurance sector. De Ferrari has also expressed support for AMP’s vertically integrated business model, but says this will be unwound if the final report of the financial services commission recommends it.
AMP LIMITED – ASX AMP, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, CREDIT SUISSE AG, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, MERLON CAPITAL PARTNERS PTY LTD
Original article by Joyce Moullakis
The Australian – Page: 17 & 21 : 6-Nov-18
Westpac has posted a cash profit of $8.07bn for the year o 30 September, which is in line with the previous financial year. Its consumer banking division’s earnings were flat, although its business banking arm performed well. Meanwhile, CEO Brian Hartzer says Westpac remains committed to its BT Financial division, although he says the bank may be willing to consider divesting its in-house financial planning business. Westpac boasted 803 salaried and aligned financial planners at the end of the financial year.
WESTPAC BANKING CORPORATION – ASX WBC, BT FINANCIAL GROUP PTY LTD, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, MLC LIMITED, IOOF HOLDINGS LIMITED – ASX IFL, SWITZER DIVIDEND GROWTH FUND (MANAGED FUND) – ASX SWT, MORGAN STANLEY AUSTRALIA LIMITED
Original article by Michael Roddan
The Australian – Page: 19 : 30-Aug-18
A class action lawsuit against AMP over its fee-for-no-service is likely to be heard in the Supreme Court of New South rather than the Federal Court. Four law firms filed separate class action applications in the Federal Court, but Justice Jonathan Beach has ruled that they should be transferred to the Supreme Court where a competing lawsuit had already been filed. Justice Beach criticised the law firms, noting that their class actions are on behalf of a similar body of shareholders and cover similar grievances. Only one of the class actions will be permitted to proceed.
AMP LIMITED – ASX AMP, SUPREME COURT OF NEW SOUTH WALES, FEDERAL COURT OF AUSTRALIA, QUINN EMANUEL URQUHART AND SULLIVAN LP, PHI FINNEY McDONALD PTY LTD, SLATER AND GORDON LIMITED – ASX SGH, MAURICE BLACKBURN PTY LTD, SHINE LAWYERS, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY
Original article by Cliona O’Dowd
The Australian – Page: 17 & 21 : 18-Jul-18
National Australia Bank has advised that Geoff Lloyd will become CEO of its MLC wealth business on 1 September. Lloyd recently stepped down as CEO of Perpetual after six years, a period which saw strong growth in its profits and share price. NAB plans to divest MLC via a sharemarket float or trade sale, and Lloyd says the opportunity to grow the business as a stand-alone wealth manager was a key reason for his decision to take on the role. The spin-off will include NAB’s superannuation and financial planning businesses.
NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, MLC LIMITED, PERPETUAL LIMITED – ASX PPT, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, WESTPAC BANKING CORPORATION – ASX WBC, IOOF HOLDINGS LIMITED – ASX IFL, JBWERE LIMITED, NABTRADE, AMP LIMITED – ASX AMP, LEND LEASE GROUP LIMITED – ASX LLC, NIPPON LIFE INSURANCE COMPANY LIMITED, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION
Original article by Roy Morgan
The Australian Financial Review – Page: Online : 17-Jul-18
New research from Roy Morgan shows that 1.96 million Australians aged 14+ (9.7%) used a financial planner/adviser to purchase superannuation or managed funds in the year to May 2018. This group accounts for $703bn in total wealth management products and have an average value of nearly $360,000. The research also shows that 33% of wealth management customers who are in the top quintile of the market by value have used a financial planner or adviser. The other groups that have above average use of financial planners/advisors include those with incomes of $130,000+ (22.1%), Baby Boomers (18.5%), those aged 50+ (16.6%), Pre-Boomers (15.8%) and the AB Socio Economic Quintile (13.7%). These are the latest results from Roy Morgan’s "Profile of Users of Financial Planners Report", which is based on in-depth interviews conducted face-to-face with over 50,000 Australians per annum in their own homes, including over 5,000 who have used a financial planner/adviser to purchase superannuation or managed funds.
ROY MORGAN LIMITED