FPA launches disclosure campaign
THEFinancial Planning Association(FPA) launched its Professional Partners initiative last week in a bid to raise public confidence levels in the industry, and has appointed formerAustralian Securities and Investments Commissiondeputy chair, Jillian Segal.
The campaign, to run over the next 12 months, will focus on five identified key issues: fee and commission disclosure; professionalism of advisers; quality of advice; Financial Services Reform Act (FSRA) transitioning; and consumer education.
However, disagreeing with suggestions the FPA was taking action ‘after the horse had bolted’, chief executive officer Ken Breakspear told a media conference that the Professional Partner program will raise the bar in relation to professional standards in the Australian financial planning industry.
“This will lead to more productive relationships and greater consumer — and practitioner — satisfaction,” he says.
If the campaign makes recommendations, Breakspear was less concrete on how they would be implemented, given the association has no specific policing mandate. However, he did say that “FPA members are bound to observe our code of ethics and rules of professional conduct, which in many instances are more demanding than the legislative requirements”.
As for the program itself, Breakspear says the disclosure campaign will have an emphasis on developing standard industry documents that are written in plain English.
He says it will also seek greater clarity, description and agreement on soft dollar commissions and other incentives paid to dealers.
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