Risk Product, Company and Regulatory Updates as at 14 January 2020
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Product Updates
YBR wealth business sale finalised
Yellow Brick Road has sold off the last of its wealth business, becoming solely a specialist mortgage business. Sequoia Financial Group bought the wealth arm, with YBR’s wealth advisers now licensed advisers of InterPrac Financial Planning, a subsidiary of Sequoia Group. The sale was worth $2.5 million so long as all YBR wealth advisers transfer over. The superannuation book is included in the sale.
Sequoia is to be the preferred referral partner for financial advice of the 1,200 mortgage brokers, with YBR being the preferred referral partner of mortgages to the Sequoia Group.
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Regulatory Updates
FASEA update on adviser exam, responds to code of ethics feedback
Remote access to exam to be available from February onwards
December exam results to be released at the end of January 2020 after marking
The February exam will be held across Australia from 13-18 February, with registrations closing on 24 January
1,700 advisers have already signed up for the February exam
The April exam will be held from 2-7 April 2020, with registrations closing on 13 March 2020
The June 2020 exam dates and venues are finalised, being held from 11-16 June, with registrations opening on 2 March and closing on 22 May
FASEA has issued its response to FG002 Financial Planners and Advisers Code of Ethics 2019 Guidance document. Over 100 stakeholders provided feedback with 26 written submissions from organisations and individual financial advisers.
IOOF finds 67 high-risk advisers
At the House of Representatives Standing Committee on Economics, IOOF has identified 67 higher risk financial advisers within its wealth management business. IOOF has been involved in presenting to the Committee. It has also said it is lagging behind on remediation payments, wishing to do a full analysis first.
Westpac to pay $9.15m for breaches
Westpac has been ordered to pay $9.15 million as a penalty for 22 contraventions of the Corporations Act and to pay the Australian Securities and Investments Commission (ASIC) costs for the proceedings. The case is related to poor financial advice provided by a single Westpac financial adviser, Sudhir Sinha, for breaching the best interests duty and related obligations. Westpac is liable for the breaches. Sinha was flagged early for poor advice, however, was allowed to remain in his position and get high achievement rankings.
