FPA rebuts industry funds on best interest
The Financial Planning Association (FPA) has sought to strongly rebut industry fund suggestions that the Government’s proposed changes to the Future of Financial Advice (FOFA) arrangements will compromise planners’ best interest obligations.
In a strongly-worded statement issued this evening, FPA chief executive Mark Rantall referred to the “rhetoric and unnecessary scare-mongering” which was clouding the facts about proposed amendments to the best interest duty.
He said Australian consumers had nothing to fear from the proposed changes and indicated that those who suggested otherwise were acting in a self-interested manner.
“We are witnessing an extraordinary effort by product providers and those who represent them to build a political position - based on flimsy arguments - in defence of a redundant section of FOFA pertaining to the best interests duty,” he said. “In this case the facts really do speak for themselves. Consumers have nothing to fear from the proposed amendments.”
The FPA has issued a statement regarding what it says are the facts about the best interests duty, particularly the fact that it is a statutory obligation and that the industry had pushed for the safe harbour steps.
Recommended for you
Unregistered managed investment scheme operator Chris Marco has been sentenced after being found guilty of 43 fraud charges, receiving the highest sentence imposed by an Australian court regarding an ASIC criminal investigation.
ASIC has cancelled the AFSL of Sydney-based Arrumar Private after it failed to comply with the conditions of its licence.
Two investment advisory research houses have announced a merger to form a combined entity under the name Delta Portfolios.
The top five licensees are demonstrating a “strong recovery” from losses in the first half of the year, and the gap is narrowing between their respective adviser numbers.
