The Financial Planning Association (FPA) has expressed concern that there is only one practicing financial planner included on the Life Insurance and Advice Working Group established by the Association of Financial Advisers (AFA) and the Financial Services Council (FSC).
FPA chairman, Matthew Rowe has told Money Management that his organisation is not participating in the process established by the FSC and AFA and believes that the most important objective for the industry must be the clear separation of product manufacturing from advice.
"It is disappointing that there is only one practicing financial planner on the working group announced last week, and you'd have to hope that doesn't mean the outcome is pre-ordained," he said.
The FSC and AFA announced on Friday that the working group would be chaired by former Australian Prudential Regulation Authority (APRA) executive, John Trowbridge.
The announcement said the working group would address issues such as the quality of advice, product design and remuneration structures which were raised in ASIC's Review of Retail Life Insurance and Advice report released on 9 October.
The Working Group includes three representatives from the FSC and three from the AFA. The FSC's representatives are FSC chief executive, John Brogden, NAB Wealth chief executive, Andrew Hagger and Suncorp Life chief executive, Geoff Summerhayes. The AFA representatives are AFA chief executive, Brad Fox, Centrepoint Alliance chief executive, John de Zwart and and AFA NSW state director and practicing financial adviser, Jef Thurecht.
The working group is scheduled to produce its initial findings in mid-December and a final report in February, next year.
