Equitem’s 2021 in review

We have had an incredibly busy 2021 and are taking this opportunity to share you with a summary of our year:

What has been our most in-demand tasks of the year?

• Working with clients aged 50+ to put strategies in place to maximise their position in preparation for retirement. Although retirement may not be on your radar, there are significant strategies to utilise now which can make a significant impact to your long term situation;
• Assisting an increased number of clients with insurance claims;
• Helping new and existing clients navigate their financial circumstances and put strategies in place to meet their goals and maximise their financial position. We have produced an increased number of debt reduction strategies, helped to identify cash flow and saving obstacles, tax minimisation, making additional contributions to superannuation, wealth investments, education investments and strategic planning;
• Provided guidance on buying or selling a home to downsize or upsize based on life stages;
• Assisted in the transitioning of UK pension assets to Australia;
• Provided advice and strategies for inheritances received;
• Winding up a number of SMSF’s.

Meeting the professional standards for financial advisers

We have been busy studying to achieve FASEA’s Education Standards. Elle and Brad met the FASEA accreditation requirements at the end of 2020, and have continued their post-graduate studies this year, fast-tracking toward exceeding the new Education requirements for Financial Planners.

The professional standards require financial advisers to:

• Meet the new education requirements, a Degree Major or Post Grad in Financial Planning (back to university for most advisers, this is a great step but it has caused a lot of advisers to plan their exit from the industry);
• Pass the financial adviser exam to test the practical application of their knowledge in key competency areas (completed by your Equitem advisers in 2020);
• Participate in 40 hours of continuing professional development (CPD) per year to maintain and extend their professional capabilities, knowledge and skills, and
• Comply with the Financial Planners and Advisers Code of Ethics – a set of principles and core values in the areas of ethical behaviour, client care, quality process and professional commitment
• Anyone wanting to become a financial adviser must also complete a full-time professional year that includes at least 100 hours of structured training.

What does this mean?

• While your Equitem advisers are already highly qualified, we are taking the opportunity to extend our qualifications with a Post Grad in Financial Planning. While this has consisted of long nights of study, Brad and Elle have been motivated and are enjoying the study semesters. They are looking forward to completing their studies in 2022, well ahead of the 2026 requirements.
• The new requirements are targeted to moving the financial planning industry toward becoming a profession, giving you the peace of mind that all advisers adhere to requirements of an approved degree, ongoing training and professional standards as they similarly apply to Law, Medicine, CPA and Chartered Accountants as well as Engineers. Financial Planning will become Australia's 5th recognised profession.
• In being recognised as a profession, we will "possess specialised knowledge and skills, education and training at a high level, and solely exercise these skills in the interest of others."
• We are now obliged to take into consideration your overall financial circumstances before providing you with advice, this is a requirement of all financial advisers and we can no longer provide advice on your insurances in isolation.
• While we have had to change the way we provide you with financial advice, we have had extremely positive feedback from clients who now have a full financial plan in place and strategies to maximise their positions, This is where the most value is achieved and we highly recommend that every individual or couple go through this process at least once.

Insurance changes

We have had a vast influx of enquiries with regards to insurances and premium increases, so what has been happening in the world of insurance?

• Life insurance companies have not been profitable and ASIC mandated significant changes, requiring insurers to transform their products and offerings moving forward. Income Protection policies have been the most significantly impacted by the enforced changes, as well as premium increases across all insurers.
• For clients who already hold an insurance policy, the changes have been grandfathered (protected).
• For new policies or if you switch insurers, you are unlikely to receive the same comprehensive product as most insurers have reduced the benefits and increased premiums on the new style of policies available.
• We always recommend that you review your personal insurance policies, but remember we are no longer legally able to provide you with advice without taking into consideration your overall circumstances. What does this mean? You will need to meet with your adviser and discuss your overall circumstances to allow them to provide you with holistic advice that has considered your short term and long term position, your adviser will provide you with a financial planning proposal outlining the advice that will be provided and the fees involved.
• Financial planning is a highly valuable process that includes a plan toward self-insurance and/or reducing your insurance premiums over time as you reach financial milestones.

In case you missed it:

• Mike Callanan semi-retired in June, and resigned his Financial Adviser License in May, however, he will not be leaving the business and will continue to focus on running group insurance and insurance claims for the foreseeable future.
• Elle Ross is now a director of Equitem alongside existing directors Bradley Ellison and David Palfrey. Elle has been employed with Equitem as a Senior Financial Adviser for over 5 years and has been advising clients since 2013. With 15 years of experience in financial services, Elle continues to receive consistent recognition for her contribution to the industry.
• At the end of 2020, and after a rigorous vetting process through ASIC, Equitem received its own Australian Financial Services License (AFSL). Our own license allows us direct control and flexibility over how we run our business and offer our services, providing greater choice in which providers we choose to use and importantly improved outcomes for you.
• Amé has continued her University studies in Marketing. The many changes you have, and will continue to see, have been driven by Ame’ bringing an exceptional approach to her client services role. Amé continues to be a valuable client services manager to Brad, Elle and all clients.

We want to take this opportunity to wish you all a Merry Christmas and a safe and prosperous 2022. We are looking forward to continuing to work with you and assisting you with your overall financial planning needs.

General Advice Warning

This information has been prepared and provided without taking into account your objectives, financial situation or needs. Before acting on this information, you should consider its appropriateness (having regard to your objectives, financial situation and needs) and any other information pertaining to your superannuation product by referring to its PDS.