Key industry executives have supported calls for a level playing field for financial planners in relation to intra-fund advice.
While acknowledging improved access to advice for consumers, participants in a round table conducted by Money Management at the Investment and Financial Services Association conference argued that relief for trustees should be extended to advisers.
“Our view on intra-fund advice is still not finalised, but one thing that’s become apparent is that if the Government is going to allow relief in a certain respect, they’ve got to allow it across the board,” said Brian Bissaker, chief executive of Colonial First State.
“[If] you allow trustees to do this thing, you’ve got to allow planners who are licensed to do this as well, because I can’t see any good reason why that’s not the case.”
Gerard Fitzpatrick, general manager of policy and government relations, Financial Planning Association, agreed, saying “the level playing field issue” would have to be discussed “very closely with the Australian Securities and Investments Commission [ASIC] as to how that goes forward”.
However, Tower managing director Jim Minto also identified failings in financial services regulation, noting the “prescriptive approach” it had on advisers, which made them unproductive and deprived them of their ability to deliver simplified advice.
“[We’ve] been saying for years it’s in the consumer’s interest to be able to have a simplified form of advice from advisers and planners, because not everybody needs a big [Statement of Advice] and so on,” he said.
Expressing continued concern over a two-tier advice regime, the chief executive of the Association of Financial Advisers, Richard Klipin, further suggested there was “a bit of an agenda being run”.
“We’re going to obviously agitate quite strongly on the fact that, on the one hand you’ve got all the Storm [Financial] context going on … And on the other hand, we’ve got a system that’s going to open up advice to call centre operators, you know, fries on the side,” Klipin said.
“And I think those unintended consequences that generally turn up out of any — what we would call poor policy — I don’t think that stuff’s been thought through.”
Count chairman Barry Lambert said if the intra-fund advice development “breaks down” the red tape in the industry, it may assist in having the relief spread to planners.
“I’d love to have the same sort of rules apply to Count,” Lambert said.
At the conference, ASIC senior executive leader, financial advisers, Deborah Koromilas argued limited advice was within the realm of personal advice for financial planners and that superannuation trustees were still subject to civil law for negligent advice.
