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The Financial Planning Standards Board (FPSB) will be taking a stronger consumer approach with the creation of a public member position on its board of directors.
The FPSB held its World Financial Planning Summit in Taipei in April, during which a list of 20 recommendations were decided on aimed at furthering the development of financial planning as a profession and creating greater awareness of the role of financial planning at a consumer level.
One of the key consumer-focused recommendations was to appoint a public member to its board of directors, as well as the suggestion that each member organisation, such as the Financial Planning Association (FPA), do the same.
“It’s a new angle for us to be taking where we have specifically picked up that issue of looking at our board representation going forward and making sure that we also include a public interest or consumer advocacy voice,” said FPSB chairperson and former FPA chief executive Corinna Dieters, “because part of our mission is very clearly focused around consumers”.
Dieters said the appointment is about recognising the voice and the perspective of consumers when it comes to making strategic decisions, ensuring the long-term benefit for consumers is considered.
She said an example of the importance of having different voices within a board is the appointment of board member Ian Johnston, who has a strong regulatory background.
“And that’s been very useful for us, because he highlights from a regulatory point of view some of the things that we need to think about,” Dieters said.
There was a strong consumer flavour across the list of recommendations, which also included the recommendation that “the FPSB should engage regulators at a global level and take consumer-centric positions on issues such as fiduciary duty, remuneration, etcetera” and “the FPSB should create a staff position to ensure consumer interests are represented in all standards-setting, policy and related matters”.
“As we become much more global in terms of the countries we are represented in, we do have to make sure that our stakeholder groups are very clearly part of our focus moving forward,” Dieters said. “Our member organisations, regulators and consumers are all key stakeholders for us, and we must make sure that we listen to each of those and build into our plans how best to respond to their needs.”
The recommendations will form part of the development of a 15-year strategy, which appears to have come at a timely point, with the financial planning landscape is set to evolve.
