Amid continuing fall-out over a document purporting to reflect a deal on the Future of Financial Advice changes between the Financial Planning Association (FPA) and the Industry Super Network (ISN), the Association of Financial Advisers (AFA) has called on the Government to act directly rather than through intermediaries.
AFA chief executive Richard Klipin said his organisation was calling on the Government to act in the national interest and work directly with the industry to achieve the required changes rather than through the ISN.
At the same time, FPA chief executive Mark Rantall issued an email to all members of his organisation disowning the content of the document and stating "the FPA [has] never and does not support opt-in".
Commenting on the origins of the document, Klipin said that if the ISN was acting as a de facto policy maker for the Government, it was time for such activity to end.
"In the interests of consumers and the people who serve them, the Minister for Financial Services and Superannuation [Bill Shorten] must fully focus on good policy," he said.
Klipin said the ISN had spent countless millions on advertising campaigns over a decade or more doggedly maligning financial advisers and undermining the value of advice, and therefore the ISN’s role in the FOFA debate needed to be put into context.
Further, he said the AFA believed the actions of the ISN had unfairly influenced the FOFA debate – something which gave rise to the need for Shorten to convene a meeting of the key stakeholders to finalise all the key issues.
"This is the only way to serve the national, rather than sectional, interests," he said.
In his email to members Rantall pointed out that the FPA had worked for many years with many stakeholders to get opt-in removed "along with [promoting] other sensible concessions like a 12-month transition period, removal of additional disclosure requirements and sensible best interest amendments to allow for scaled advice".
"We are continuing to work on those concessions and more on your behalf even as the legislation is being debated," his email said.
"We cannot guarantee the final outcome as that is in the hands of the Government and the independents, but we will continue to fight for what is in the best interest of members and the professional. That includes the removal of opt-in."
