FPA warns on fee increases post-Budget

3 April 2019

The Financial Planning Association (FPA) has unsurprisingly welcomed the Federal Budget, which was light on policy changes that would impact its members unlike in previous years where superannuation had been a focus, particularly welcoming the tax cuts.

Specifically, the industry body welcomed moves by Treasurer Josh Frydenberg to increase flexibility in superannuation for people aged 65 and 66, which was announced ahead of Budget night, and tax breaks for low and middle-income households.

FPA chief executive, Dante De Gori, said that the superannuation announcement would help preparing for the upcoming rise in age pension eligibility to 67 from 2020 – 2021.

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The FPA was more cautious in welcoming Frydenberg’s plans to implement the Banking Royal Commission’s findings over the next five years however, noting that much of the $606.7 million required would primarily be recovered from the Australian Securities and Investments Commission’s (ASIC’s) industry funding model.

It warned that this would add to significant advice costs faced by the “mums and dads of Australia”, with De Gori stating: “We believe implementing the Royal Commission recommendations is necessary for the protection of consumers, but are concerned by how much it will cost.”

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Once again the FPA concentrates on consumers, not the members that actually pay you. Hey FPA ill tell you something for free. Clients will not pay more for advice so its us smaller operators that are being squashed out of existence with these rising fees. I know you don't care as we aren't professional partners,but please don't ever say you speak for all planners as you only speak for a select few. These guys don't get it, and I think its as they are all on wages and don't need to work for their money anymore. They don't get it clients will not PAY more for advice, they will just stop getting it. Stop rolling over all the time FPA, chose a side and stick to it, is it advisers or clients? If its clients get them to join the FPA, then they can pay you to work for them, at the moment members money is cross subsidising this work thats not actually adding any value at all for advisers.

i hear you and the FPA is frustrating irrelevant. They called me today and i shared with them how bad things were and including my health and that of others. they seemed surprised we had issues.......pause..... what world are they living in and that the lady hadnt heard these problems before. I explained a lot and spoke about their value offering going forward. that i am the customer and have paid their fees over 25 years. I want to bring to them the concept of BID to us. i spoke about the new fees going forward and that I havent been able to value any of them but Im forced to pay over $1000 a year to display my CFP behind my bedroom door (its lost any value apparently). So i offerred in moving forward that they must fall into line with their value offering and $50 a year for retaining my certificate was fair value I decided for my next 12 months. I am happy to continue membership but not happy to pay for values that are not relevant to me. I feel they dont understand...they best get lean and mean to offer value to those who can pay. they must adapt.

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