VolumeVolume 2727 IssueIssue 7 AAugustugust 20201515 $15.00$15.00 Survive and thrive Chris Riddell talks about embracing change as a way of shaping the future THIS ISSUE: The National Disability Insurance Scheme / Congress 2015 P100007614 Financial impacts of insurance funding options PP100007614 P Isn’t it your time to shine? Entries for the 2015 FPA Awards are now open. Visit fpa.asn.au/awards for more details. Do you have a client story to share? Have you gone above and beyond for your local community? Maybe it’s your time to shine. Entries for the 2015 FPA Awards are now open! The categories this year are: FPA CERTIFIED FINANCIAL PLANNER® Professional of the Year Award FPA Financial Planner AFP® of the Year Award Future2 Community Service Award University Student of the Year Award We believe your hard work and dedication deserves recognition. Find out more at fpa.asn.au/awards. Contents August 2015 4 CEO message 10 Opinion 6 News 38 Centrelink 9 Chapter Events 39 Directory 12 Change through actions John Moran CFP®, winner of the Gwen Fletcher Memorial Award for semester one, talks about winning the award and attaining the CFP® designation. 16 Survive and thrive Speaking at the upcoming FPA Professionals Congress, Chris Riddell talks about embracing change as a way of shaping the future. JAYSON FORREST reports. 20 Customer due diligence 16 Compliance with the new customer due diligence obligations for Anti-Money Laundering and Counter- Terrorism Financing is fast approaching. EMMA HUNTER asks, will you be ready for the 1 January 2016 deadline? 22 Making sense of global markets Investment specialists provide their opinions on where opportunities sit and what needs to happen to reignite the local market. JAYSON FORREST reports. 28 National Disability Insurance Scheme CPD MONTHLY: It is important for planners to know the 12 22 difference between what the National Disability Insurance Scheme provides when compared with personal insurance cover, writes KATHERINE ASHBY. Financial Planning magazine is the offi cial publication of the Financial Planning Association of Australia Limited (ABN 62 054 174 453) www.fpa.asn.au • [email protected] • Level 4, 75 Castlereagh Street, Sydney NSW 2000 32 Insurance funding options Phone 02 9220 4500 • Fax 02 9220 4580 CPD MONTHLY: RACHEL LEONG looks at the fi nancial Editor: implications of various insurance funding options, such Jayson Forrest as the impact on disposable income, tax deductions, tax Locked Bag 2999, Chatswood NSW 2067 T: 02 8484 0906 ABN 80 132 719 861 on proceeds and retirement savings. E: [email protected] www.cirrusmedia.com.au Copyright Cirrus Media 2014 Advertising: © Financial Planning Association of Australia Limited. All material published in Financial Planning is copyright. Suma Donnelly David Robertson Reproduction in whole or part is prohibited without the written permission of the FPA Chief Executive Offi cer. T: 02 8484 0796 T: 02 8484 0613 Applications to use material should be made in writing and sent to the Chief Executive Offi cer at the above e-mail M: 0416 815 429 M: 0408 242 009 address. Material published in Financial Planning is of a general nature only and is not intended to be comprehensive nor does it constitute advice. The material should not be relied on without seeking independent professional advice E: suma.donnelly@ E: david.robertson@ and the Financial Planning Association of Australia Limited is not liable for any loss suffered in connection with cirrusmedia.com.au cirrusmedia.com.au the use of such material. Any views expressed in this publication are those of the individual author, except where Jimmy Gupta Craig Pecar they are specifi cally stated to be the views of the FPA. All advertising is sourced by Cirrus Media. The FPA does not endorse any products or services advertised in the magazine. References or web links to products or services T: 02 8484 0839 T: 02 8484 0978 do not constitute endorsement. Supplied images © 2014 Shutterstock. ISNN 1033-0046 Financial Planning is M: 0421 422 722 M: 0411 955 368 Average Net Distribution published by Cirrus Media on behalf of the Financial Planning Association of Australia Limited. E: jimmy.gupta@ E: craig.pecar@ Period ending Sep ’14 , CFP® and CERTIFIED FINANCIAL PLANNER® are certifi cation marks owned outside the U.S. by the cirrusmedia.com.au cirrusmedia.com.au 10,537 Financial Planning Standards Board Ltd. The Financial Planning Association of Australia Limited is the mark’s licensing authority for the CFP marks in Australia, through agreement with the FPSB. August 2015 | 3 CEO Message Connecting consumers I am proud of our growing professional community, and all that we achieve together. We have some exciting consumer initiatives coming up, so make sure you get involved. At the FPA, we are passionate 10thousandgirl Building on the work we already about connecting consumers with do with universities through the high quality fi nancial advice. We partnership Financial Planning Education do this through raising awareness Back in May, we proudly Council (FPEC), this program will about FPA members, participating announced our partnership recognise the top performing in fi nancial literacy initiatives with 10thousandgirl, a social student nationally. and encouraging members to enterprise that promotes fi nancial become role models in their local literacy amongst women. In Future2 fundraising community. support of their 2015-17 Regional Women’s Financial Literacy If you are not too familiar with the Financial Planning Project, we have sponsored 20 Future2 Foundation, I encourage FPA members to participate in you to take a look at the marvellous Week the program. work it does, with support from Taking place on 24-30 August, the FPA community. Through Participation includes speaking fundraising, personal donation and Financial Planning Week will once at a local workshop, being again raise consumer awareness volunteering, together we raised listed in the online directory $267,000 last year. about fi nancial advice and ensure of Australia’s Top 100 Trusted Australians at every life stage are Advisers for Women, blog The signature annual Future2 thinking about the future. This content submission and the Wheel Classic heads north year’s campaign includes an opportunity to have coffee this year, leaving Sydney on extensive public relations program, catch ups with women in the 10 November and arriving in social media advertising, a local local area. New locations will be Brisbane on 18 November for the ambassador program and our announced later this year. FPA Professionals Congress. I signature ‘Ask an FPA Expert’ encourage you to consider entering online forum, where consumers FPA Awards or supporting one of the riders. can put their questions to FPA This year, Future2 also launched experts. program the Future2 Kilimanjaro We were delighted with the level We are delighted to open Challenge, a hike up the world’s of interest from FPA members nominations for the 2015 highest freestanding mountain wanting to be involved with the FPA Awards program, which next February. For more online forum. If you weren’t able recognises outstanding fi nancial information about both these to participate on the panel, you advice and also FPA members events, you can visit can still support Financial Planning who have gone above and www.future2foundation.org.au Week by spreading the word on beyond for their local community. Of course, this is only the tip social media. You will hear more Nominations will close on 11 of the iceberg. There are many about this as we kick off the September and you can fi nd out more initiatives in the pipeline campaign. more about this year’s awards on and I look forward to sharing the FPA website. them with you soon. This year, I am particularly Enjoy this edition. We were delighted with the level of excited about the new University interest from FPA members wanting to Student of the Year award, which recognises students who have Mark Rantall CFP® be involved with the online forum. achieved excellence early on. Chief Executive Offi cer 4 | Financial Planning www.fi nancialplanningmagazine.com.au looking for a FIXED INCOME alternative? INVEST WITH A GLOBAL FIXED INCOME LEADER In today’s uncertain rate environment, it takes an unconstrained approach and an experienced partner to fi nd fi xed income investments with potential. At Franklin Templeton, we offer a truly global platform: * A team of over 170 fi xed income investment professionals that scour the world for the best opportunities * Fixed income experts located on-the-ground across 12 countries to tap into local insights * One of the world’s largest global fixed income managers, with over $450 billion in fi xed income assets globally Learn more about our award-winning global fi xed income strategies at franklintempleton.com.au/fi xedincomeleader. FRANKLIN TEMPLETON TEMPLETON FRANKLIN TEMPLETON MULTISECTOR GLOBAL BOND GLOBAL AGGREGATE BOND FUND PLUS FUND BOND FUND Franklin Templeton Investments Australia Limited (ABN 87 006 972 247) (Australian Financial Services Licence Holder No. 225328) issues this publication for information purposes only and not investment or fi nancial product advice. It expresses no views as to the suitability of the services or other matters described herein to the individual circumstances, objectives, fi nancial situation, or needs of any recipient. You should assess whether the information is appropriate for you and consider obtaining independent taxation, legal, fi nancial or other professional advice before making an investment decision. A Product Disclosure Statement (PDS) for any Franklin Templeton funds referred to in this document is available from Franklin Templeton at www.franklintempleton.com.au or by calling Toll Free 1800 673 776. The PDS should be considered before making an investment decision. Investments entail risks, the value of investments can go down as well as up and investors should be aware they might not get back the full value invested.