Planners face new lobby group

A new body made up of the consumer group Choice, industry fund groups and welfare bodies has sought to buy into the financial planning debate.

The new group, called AusFIN, is being represented by the chair of Choice Jenni Mack and has kicked things off by claiming attempts by the big end of the finance industry (including banks and insurance companies) to derail the Future of Financial Advice reforms would be self-defeating.

Mack said members of the new grouping had been advocating the changes for years and would not rest until the package was implemented in full.

“The financial planning industry should be a profession worthy of public trust,” she said. “However, without fundamental change to the way financial planners charge for their services, the industry will remain a sales force rather than a profession.”

“Despite the reforms, including a long overdue requirement for financial advisers to act in the best interests of their clients, banks, insurance companies and big funds managers are lobbying furiously to have other parts of the package watered down,” Mack said.

She claimed volume-based payments created the same conflict of interests as commissions and were particularly odious because they were very large, very complex and almost impossible disclose.

Mack said the new organisation also believed annual opt-in was doubly necessary because many financial planning businesses would replace commissions with ongoing asset-based fees.

The organisations making up the new body are the Industry Super Network, the Australian Council of Trade Unions, the consumer group Choice, the Financial Services Union, the Australian Financial Counselling and Credit Reform Association and the Australia Institute.