AFA points to remuneration conflicts
The Association of Financial Advisers (AFA) has acknowledged that conflicts of interest exist at all levels with respect to adviser remuneration.
In a policy update delivered to members in the wake of the Financial Adviser Standards and Ethics Authority (FASEA) final legislative instrument for the Code of Ethics, the AFA’s policy director, Phil Anderson pointed to the new Standard 3 which stated: “You must not advise, refer or act in any other manner where you have a conflict of interest or duty”.
He suggested this might be practically problematic.
“We have some practical concerns about the reality of this given the extent to which conflicts of interest exist at all levels and with the different adviser remuneration arrangements,” Anderson said.
Anderson and AFA chief executive, Phil Kewin are currently in Canberra meeting with politicians including Australian Conservatives leader, Senator Cory Bernardi.
Recommended for you
It can be extremely hard to realise the gains from financial advice M&A, according to Peloton Partners’ Rob Jones, and more could be gained from firms looking inward at their own practice.
With platforms reporting their quarterly results, there is a clear divide in the adviser markets they are targeting, according to platform specialist Recep Peker, and which would be right for your clients.
The Federal Court has imposed a $10 million penalty on Macquarie Bank for failing to prevent and control unauthorised fee transactions by third parties including financial advisers.
A financial advice firm has seen a weekly decline of 10 advisers, with all moving to a new licensee, while Centrepoint Alliance continues its “growth story”.