FPA referral model with Cbus off to solid start
The Financial Planning Association (FPA) has received 25 referrals for advice from industry super fund Cbus since 1 January as part of its pilot program announced in October last year.
FPA chief executive Mark Rantall said the FPA had also identified 23 professional practices across four states to provide the required advice and had received widespread interest from members across the country.
"We have enough coverage in the four states for a successful pilot and we need to be able to manage the pilot and ensure the quality and professionalism of the advice provided," Rantall said.
Although the two groups announced the pilot program in mid-October last year, Rantall said practices had to apply to operate within the pilot and meet acceptance criteria. After this the FPA had to identify Certified Financial Planner (CFP) qualified planners and professional practices to work under the pilot advice program.
Professional practices needed to have 75 per cent of planners as FPA members and 50 per cent of planners holding the CFP qualification. Rantall said these practices also had to add Cbus to their approved product lists ahead of the start date.
At the time of the announcement the FPA stated the pilot would operate in Queensland, South Australia, Tasmania and the Northern Territory before possibly being expanded at the end of the six-month trial.
Rantall said there was potential to expand the program nationally but that decision would rest with Cbus. At present the process adopted by the two groups was working well.
He also stated that it was too early to analyse the type of clients referred and the advice given, but they were usually approaching retirement and had complex financial arrangements which required specialised advice outside the scope of Cbus' general advice model.
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