Advisers are being heard, says AFA
The Association of Financial Advisers (AFA) has attempted to alleviate member concerns about the Future of Financial Advice reforms, stating that advisers have the ear of Government.
Chief executive Richard Klipin said the AFA was cautiously optimistic about the future for financial advisers following meetings with members of Treasury, Minister for Financial Services, Superannuation and Corporate Law Chris Bowen, and Shadow Minister Luke Hartsuyker last week.
“We were encouraged by the active spirit of consultation in Canberra,” said Klipin said. “There is a genuine understanding, from both sides of the political fence, of the need to move towards workable solutions for our industry and the clients we serve.”
He said Treasury introduced a long consultation period because it was aware that the reforms could dramatically affect businesses.
Klipin said areas of concern raised by the AFA included: the ‘opt in’ arrangements for continuing advice; the definition of fiduciary duty and the ‘best steps’ process; remuneration and commercial arrangements including volume-based remuneration; intra-fund advice; ensuring that the independent financial adviser segment remains robust and competitive; and ensuring the reforms achieve their stated objectives.
Klipin said while the reforms “rank among the top 10 most stressful life events”, he urged members not to panic as the changes entail a long consultation period, with Government taking a considered approach.
“We also encourage members suffering from stress to get professional counselling if they feel they need it,” he added.
Recommended for you
As advisers risk losing two-thirds of FUA during the $3.5 trillion wealth transfer, two co-founders underscore why fostering trust with the next generation is vital to retaining intergenerational wealth.
As advisers seek greater insights into FSCP determinations, what are the various options considered by the panel and can a decision be appealed?
Amid the current financial adviser shortage, advice firm Link Wealth is looking to expand its financial literacy program for high school students across the country.
TAL Risk Academy has updated its range of ethics courses to help financial advisers meet their CPD requirements following adviser feedback, including interpreting FSCP determinations.
