As I settle into a new year, I am contemplating the circumstances that lie ahead for the financial planning community and our clients.
On Monday night we will see the release of results and recommendations from the Hayne Royal Commission which is likely to have some dramatic consequences for the banking industry and unknown changes to the financial planning community. How these consequences will affect our clients is yet to be seen but will hopefully be of minor impact.
By May we will have an election of Federal Parliament which is likely to see a change of government if the opinion polls are accurate. The major consequence of that, to us and our clients, is the Labour Party’s proposed change to the dividend imputation system which is likely to have dire consequences for many Australians and particularly self-funded retirees and lower income earners.
Speaking more broadly, the legislative changes to financial planning regulations that are already in place are due to take ultimate effect in 2020. These include the requirement for financial planners to have a degree-based education and specialist qualifications which are set at master’s level. Surveys have shown that there is likely to be a massive exodus of Financial Planning practitioners who do not meet these requirements. The consequence of that is a dramatic increase in the sale or merger of Financial Planning practises which will obviously have an impact on their clients.
I feel comforted that at Hewison Private Wealth we have instituted policies and practices over many years that ensures our clients receive first class service and advice provided by appropriately qualified practitioners. From that point of view, we expect little fallout from the Hayne RC and already meet the new Financial Planning base education standards.
I have no political leaning and given the current political scene, the outcome of the federal election is frankly of little interest to me. But, as I have previously written, I am concerned about the proposed change to the dividend imputation system and how that will unfairly impact many Australians. We at Hewison Private Wealth will obviously monitor this situation closely if it eventuates and make whatever strategic changes that are required to protect our client’s interests.
Have a great 2019.
Hewison Private Wealth is a Melbourne based independent financial planning firm. Our financial advisers are highly qualified wealth managers and specialise in self managed super funds (SMSF), financial planning, retirement planning advice and investment portfolio management. If you would like to speak to a financial adviser on how you can secure your financial future please contact us 03 8548 4800, email firstname.lastname@example.org or visit www.hewison.com.au
Please note: The advice provided above is general information only and individuals should seek specialised advice from a qualified financial advisor. The views in this blog are those of the individual and may not represent the general opinion of the firm. Please contact Hewison Private Wealth for more information.