<abstract xmlns="http://www.w3.org/1999/xhtml">

Investment risk and retirement income security are constant bedfellows. This paper provides estimates of investment risk for defined contribution (DC) plan members to illustrate the importance of compounding (both positive and negative) during the accumulation phase of retirement saving <italic>and</italic> associated retirement income during the decumulation phase. In addition to workers being exposed to investment risk via their DC plan, older workers face significant COVID-19 related headwinds in the labour market. The cresting of investment risk with the current pandemic may create a lost generation of those approaching retirement (and recently retired) through lower contribution rates and an unfavourable path of returns.
</abstract>

Covid-19, Investment Risk, and Retirement Security

<abstract xmlns="http://www.w3.org/1999/xhtml">

The purpose of this study was to compare and contrast the concurrent, convergent, and predictive validity of a variety of risk tolerance tests and questionnaires. The tested measures represent tests and scales derived from economic and psychometric theory. It was determined that tests based on economic theory had similar predictive power, implying that economic measures provided some degree of convergent validity across measures. Only the psychometric risk tolerance measure, however, was found to be correlated to other indicators of risk tolerance and risk-taking. Results from this exploratory study suggest that a questionnaire developed using psychometric theory appears to offer superior predictive insight into financial risk-taking, at least when compared across the measurement techniques examined in this study.
</abstract>

Predicting  Financial Risk Tolerance and Risk-Taking Behaviour: A Comparison of Questionnaires and Tests

<abstract xmlns="http://www.w3.org/1999/xhtml">

Published empirical research (<xref ref-type="bibr" rid="j_fprj-2020-0003_ref_096">McInnes 2020</xref>) proves licensing financial advisers through multiple profit-driven Australian Financial Services licensees contributes to conflicts of interest by association. Government’s response is to regulate advisers by adopting a single disciplinary body (<xref ref-type="bibr" rid="j_fprj-2020-0003_ref_066">Frydenberg &amp; Hume 2019</xref>) to professionalise advisers like established professions. This paper supports Government’s move to implement this body (<xref ref-type="bibr" rid="j_fprj-2020-0003_ref_156">Taylor 2020c</xref>; <xref ref-type="bibr" rid="j_fprj-2020-0003_ref_092">Maddock 2020</xref>), albeit delayed by COVID-19 (<xref ref-type="bibr" rid="j_fprj-2020-0003_ref_154">Taylor 2020a</xref>), by using the evidence published in a Routledge book (<xref ref-type="bibr" rid="j_fprj-2020-0003_ref_096">McInnes 2020</xref>). It aims to motivate advisers to work with policymakers to reshape financial advice into a true, accredited profession to address the problem of conflicted association, to make advice accessible (<xref ref-type="bibr" rid="j_fprj-2020-0003_ref_093">Marsh &amp; Phillips 2019</xref>) and conflict free, while also dismantling costly compliance legislation (<xref ref-type="bibr" rid="j_fprj-2020-0003_ref_147">Smith &amp; Sharpe 2020</xref>).
</abstract>

The Australian Government is Justified in Establishing a Single Disciplinary Body

<abstract xmlns="http://www.w3.org/1999/xhtml">

The recommendations of the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry outlined a new approach to disclosure, review and remuneration practices of the financial planning industry. Drawing from academic articles and industry analysts, the Financial Services Royal Commission is likely to have a significant impact on the financial planning industry and the operating model of financial advice firms, which requires the redesign of financial advice business and delivery models. This paper provides some evidence of the changes in the operating model of financial advice firms after the enactment of the Royal Commission’s recommendations. We also identify gaps in the literature and highlight some important research issues that provide directions for future research.
</abstract>

The Hayne Royal Commission and Financial Planning Advice: A Review of the Impact on the Operating Model of Financial Advice Firms

Volume 9 (2023): Issue 1 (December 2023)

Volume 8 (2022): Issue 1 (December 2022)

Volume 7 (2021): Issue 1 (December 2021)

Volume 6 (2020): Issue 1 (December 2020)

Volume 5 (2019): Issue 1 (December 2019)

Volume 4 (2018): Issue 2 (December 2018)

Volume 4 (2018): Issue 1 (December 2018)

Volume 3 (2017): Issue 2 (December 2017)

Volume 3 (2017): Issue 1 (December 2017)

Volume 2 (2016): Issue 2 (December 2016)

Volume 2 (2016): Issue 1 (December 2016)

Volume 1 (2015): Issue 1 (December 2015)

Financial Planning Research Journal

The Financial Planning Research Journal (FPRJ) Editorial Board is a peer-reviewed open-access journal that publishes original, applied, and topical research articles to aid understanding of the practice and policy of financial planning in Australia. Published on behalf of the Financial Advice Association Australia, our articles span topics including behavioural finance, economics, finance, financial advice, financial literacy, financial education, financial planning, financial regulation, insurance, investment, retirement, and related disciplines. The journal also includes articles from the education, ethics, law, and psychology fields where they relate to financial planning and advice.  FPRJ provides an academic platform to discuss issues around personal financial planning and wealth management, changes in the financial planning industry, and the notion of professionalism in personal finance.  Published twice a year, FPRJ focuses on matters of interest to the financial advice community that will inform the practice and/or policy of the profession. FPRJ’s readership includes academic researchers, educators, practitioners, and policymakers. FPRJ articles are included on reading lists for university students, as continuing professional development for practitioners, and as preparatory resources for the National Financial Adviser exam in Australia.  While the journal has its origins in Australia, FPRJ encourages international submissions as it seeks to expand the body of knowledge in financial advice and financial planning and contribute to the development of financial planning as a profession.  Archiving Sciendo archives the contents of this journal in Portico - digital long-term preservation service of scholarly books, journals and collections. Plagiarism Policy The editorial board is participating in a growing community of Similarity Check System's users in order to ensure that the content published is original and trustworthy. Similarity Check is a medium that allows for comprehensive manuscripts screening, aimed to eliminate plagiarism and provide a high standard and quality peer-review process. 

Financial Planning Research Journal

Volume 6 (2020): Issue 1 (December 2020)

Covid-19, Investment Risk, and Retirement Security

Predicting Financial Risk Tolerance and Risk-Taking Behaviour: A Comparison of Questionnaires and Tests

The Australian Government is Justified in Establishing a Single Disciplinary Body

The Hayne Royal Commission and Financial Planning Advice: A Review of the Impact on the Operating Model of Financial Advice Firms

Search

All Volumes and Issues in this Journal