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Articles on financial advice

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Some financial advisers are greedy, but others simply have a bias problem. Shutterstock

What behavioural economics tells us about financial adviser greed

There’s no doubt incentives matter for financial advisers. If an employer pays a higher commission to an adviser for selling one product instead of another, it’s likely the commission-linked product will…
Hollow answers: waiting for legislative reform to improve financial advice is likely to prove futile. Shutterstock

Explainer: the new future of financial advice

It is not difficult to establish the case for the importance of financial advice. With an ageing population, increasing longevity, higher expectations of post retirement living standards, the complexity…
Finance Minister Mathias Cormann has taken a fresh look at FOFA reform, and decided to proceed with some amendments. Alan Porritt/AAP

Financial advice reforms rollback to proceed: experts react

The Federal Government has confirmed it will push ahead with controversial moves to water down the Future of Financial Advice (FoFA) law reforms, on the grounds the current legislation reduces the affordability…
The government is considering whether to roll back a requirement for bi-annual financial planning reviews. Shutterstock

We regularly review our insurance, why not our investments?

Following last week’s public hearing, the Senate Economics Legislation Committee is preparing to report on its inquiry into a government bill that would significantly water down the Future of Financial…
Consumers generally trust their financial adviser, even when the level of advice is poor. Shutterstock

The future of financial advice needs educated advisers

Finance Minister Mathias Cormann’s decision to back away from plans to repeal sections of the Future of Financial Advice (FOFA) reforms is not surprising. Recent comments suggest this may indeed be a complete…
The path to good financial advice is littered with fees. Shutterstock

The one certainty of financial advice is unfettered fees

One of the main arguments made by Australia’s banks for the watering down of Future of Financial Advice (FoFA) reforms is that it would reduce the cost of financial advice to consumers. Specifically, the…
ASIC Chairman Greg Medcraft. Dan Peled/AAP

ASIC underwhelms with call for greater powers

The Australian Securities and Investments Commission has called for more powers, including a broadening of the definition of “whistleblower”, in a paper defending its role as the corporate watchdog. ASIC’s…

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