FPA claims validation from Senate Report
The Financial Planning Association (FPA) has claimed its calls for the separation of product and advice and its past move away from conflicted remuneration have been validated in the findings of the Senate Committee reviewing the performance of the Australian Securities and Investments Commission (ASIC).
Responding to the release of the committee’s report yesterday the FPA stated the findings of the 533 page report vindicated “a strong and comprehensive position forged by the FPA on behalf of its members and all Australian consumers”.
FPA chief executive Mark Rantall also claimed the Senate Committee had unanimously accepted all of the recommendations made in its 10-point plan released last month including mandated education standards and membership of a professional association.
“We are pleased that the inquiry has included all of the FPA’s recommendations in their final report. The FPA is committed to stamping out inappropriate advice outcomes rooted in complex product distribution and conflicted remuneration practices, while offering viable solutions based on what is right about appropriate financial planning,” Rantall said.
Rantall said the FPA welcomed the Senate Inquiry findings which were consistent with its submissions to the Committee and was pleased its work and public position in recent years was validated by the Senate Committee.
“The Senate Committee Inquiry commenced just over 12 months ago, yet the FPA’s 2010 decision to overtly align its activities with the public interest is a tangible pointer to our future obligations. It drew a hard line from which we will lift standards of behaviour and accountability for those who seek to advise on other people’s money.
“We are therefore pleased to see all of this hard work - and our subsequent public position - validated by the Australian Senate in its milestone findings today,” Rantall said.
Money Management’s coverage of the Senate Committee report into the performance of ASIC:
Senate Committee recommends royal commission
Bushby issues dissenting report
CBA refutes senator's deflection claims
ASIC should face regular reviews
Senate report calls for adviser banning powers and increased penalties
Report calls for higher education standards and enshrinement
Recommended for you
ASIC has launched court proceedings against the responsible entity of three managed investment schemes with around 600 retail investors.
There is a gap in the market for Australian advisers to help individuals with succession planning as the country has been noted by Capital Group for being overly “hands off” around inheritances.
ASIC has cancelled the AFSL of an advice firm associated with Shield and First Guardian collapses, and permanently banned its responsible manager.
Having peaked at more than 40 per cent growth since the first M&A bid, Insignia Financial shares have returned to earth six months later as the company awaits a final decision from CC Capital.
