The Govt’s Financial Information Service that never got measured
A financial information service provided by the Commonwealth Department of Human Services and funded by the Federal Government since 1989, the Financial Information Service (FIS) has been deemed to have no clearly documented objectives and only one performance measure.
An Australian National Audit Office (ANAO) investigation into the FIS has resulted in a report which has served to seriously question the purpose and ongoing role of the service noting that it has not been fully evaluated in the 27 years of its existence.
"The Department of Human Services' Financial Information Service is a long running service offering which does not have clearly documented objectives, targeting or performance measures to provide focus in an environment of high ongoing demand for the department's information services," the audit report said.
The audit report concluded that:
• There has been growth in the Service's scope over time and the current FIS Service Offer does not fully document its objectives.
• When first established in 1989, FIS was targeted solely to pensioners. Since 1991, the Service has been targeted at all Australians, and the department advised that two sub-groups for FIS are the under-55 age group and retirees. These groups comprise some 75 per cent of the population.
• The Service provides financial information to people with a net household investment worth above the Australian household average of $400, 000. FIS also delivers, at public expense, specialist financial information which is in many cases available elsewhere in the market.
• The department's one performance measure for the Service focusses solely on attendance at seminars and does not provide a basis for assessing outcomes against the FIS objectives.
On the upside, the audit report noted that "stakeholders advised the ANAO that they generally regarded FIS as a valuable service providing independent, accurate, and comprehensive information, particularly for those approaching retirement".
Noting that the operation has not been examined since 1989, the ANAO has recommended that the FIS be reviewed on a first principles basis.
Recommended for you
BT is to launch a new low-cost “Focus” investment menu for its Panorama platform this October, in partnership with Vanguard, seeking to compete with industry superannuation funds.
Net gains of financial advisers have already doubled since the start of FY25, according to this week’s Padua Wealth Data, with momentum gathering pace far faster than the previous financial year.
National advice firm MiQ Private Wealth has appointed a new chief executive to lead the business through a “transformative era” after penning a partnership deal with AZ NGA earlier this month.
WT Financial’s managing director, Keith Cullen, believes the firm’s Hubco model with Merchant Wealth Partners will be a “repeatable growth model” for the business as it scales its adviser numbers.
