Improving the image of financial planners in the eyes of Australian consumers will be the cornerstone to Ken Breakspear’s strategy for the Financial Planning Association.
Breakspear was elected to the chief executive position two weeks ago. The FPA’s former head of professional standards has been the acting chief executive since the sudden departure of former chief executive Michael McKenna four months ago.
“We are finding that there is a clear need to build consumer confidence in financial planning,” Breakspear says.
“To achieve this we will continue our commitment to ethical standards and rules of professional conduct. We also have committed to improve education standards, such as the Certified Financial Planner (CFP) professional education program.”
Breakspear says the financial planning industry is entering a “golden age”.
He says there is now more demand for financial planners than there has ever been before. He says retail investments alone are predicted to reach $600 billion in the next five years.
Breakspear has been in the thick of the action at the FPA since its inception eight years ago. He was the executive chairman of the Australian Society of Investment and Financial Advisers (ASIFA) when it merged with the International Association of financial planners (IAFP) to form the FPA.
Breakspear considers the merger to be one of the “telling moments” of his industry career.
“I’ve inherited a pretty strong legacy in terms of what has been built. And having belong to an association that has been built from the ground up is something that is quite substantial,” he says.
“We have really come out of nowhere to become a professional community of financial planners that has gained the respect of consumers, regulators and government.”
Breakspear has already begun to address some of the key issues currently facing financial planners.
Issues regarding the Financial Service Reform Bill (FSRB) and the alienation of personal services income are only two issues among many atop Breakspear’s list.
Breakspear says his immediate focus is working closely with the Australian Securities and Investment Commission (ASIC) on introducing the FSRB.
As well as creating a close relationship with ASIC, Breakspear says the FPA is looking to work closely with the Federal Government. He says its time the FPA gain more visibility in Canberra so industry issues can be represented strongly.
“At present we have been working closely with the Minister for Financial Services Joe Hockey and the assistant treasurer Rod Kemp in regards to finding a workable solution to the issue of alienation of personal services income,” he says.
As for his own personal policies, Breakspear says all will be revealed in March next year, following the release of the FPA’s corporate plan.
However, Breakspear did acknowledge there are more opportunities for the industry if they work with accountants and create pathways with CFPs.
