Life after Ripoll – what does it mean to your business? - Richard Kilpin – CEO of AFA

A Financial Planners Value Proposition:-
People
- Live to long – (ensure that they have adequate savings)
- Die too soon – (Life Insurance, TPD)
- Get Ill – (Income Protection)

A Financial Planner should
- give impartial advice to clients;
- help clients through tough decisions and events
- educate and coach
A Financial Planner provides Advice vs Selling Products.
Financial Planners have traditionally been paid by Product Providers vs getting paid by clients for services rendered. This could cause an inherent conflict of interest for the Financial Planner.

It is key that the Financial Planner has as part of his DNA the Trust, Respect and Transparency of his client.

RIPOLL INQUIRY
The Ripoll Inquiry covered the following:-
- Role of Advisers
- Fees and Commissions
- Advice Documents
- Adequacy of PI

Recommendations of the Ripoll Inquiry
- The Financial Planner is to act in best interests of Clients
- Pay for value of Advice – not by Product
- Tax Deductability of Financial Planning Advice

HENRY REVIEW
In 2030
- Population is currently 22m – will be 35m
- Health is currently 4% - will be 7% of GDP
- 22% of population will be greater than 65
- Superannuation Currently 1.3 Trillion – it will probably be $5 trillion in 2020

There needs to be a major overhaul of tax and superannuation and infrastructure so that Australia will be able to plan for the future.

The Australian Government needs a roadmap for the next 50 years.

THIS IS A CALL TO ACTION!!

Financial Planners and Advisers will need to step up to the Plate and ensure they are
- adequately educated to manage and advise on these funds.
- there are systems and processes to cope with the above