Don't just focus on planners, says FPA

The Financial Planning Association (FPA) has sought to reinforce the issue of professional obligation in financial planning as a complementary consumer safeguard to legislative obligation.

Appearing before the Parliamentary Joint Committee on Corporations and Financial Services, FPA chief executive Jo-Anne Bloch made clear her organisation’s strong view on the need for professional obligation as well as a tighter definition of the term “financial planner”.

However, Bloch also urged the members of the Parliamentary Committee not to lose sight of the broad issues confronting the financial services industry by singling out certain groups of professionals.

“In order to reach rational outcomes that achieve the balance between robust consumer protections and a vibrant and competitive industry, we must ensure all areas of concern are covered and the inquiry does not single out certain groups of professionals,” she said.

On the key question of remuneration, Bloch’s statement to the inquiry reinforced the content of its submission arguing that remuneration practices needed to be addressed by removing product providers as determinants and influencers of remuneration.