Storm Financial fallout batters FPA

The chief executive of the Financial Planning Association (FPA), Jo-Anne Bloch, has defended the industry body against suggestions it is failing to protect the reputation of the industry through disassociation with Storm Financial.

Bloch has strongly rejected the view of some industry participants that the FPA is not doing enough to distance its membership from the actions of Storm. At the same time, Bloch said the FPA has begun the process of terminating the principal membership of Storm as a result of the appointment of administrators and receivers to the group.

“I strongly reject [those criticisms] from the point of view that we have commenced an investigation,” Bloch said.

“All members would want to be treated fairly and Storm is no different.

“Members jumping to conclusions about [Storm’s] model or whether it was right or wrong is completely inappropriate,” Bloch added.

“They don’t have the facts, they don’t have the evidence and it’s not for me to defend or attack Storm,” Bloch said.

“It’s appropriate for the FPA to conduct an investigation and follow a process and at the end of the process we can draw conclusions based on fact and evidence.”

On whether or not Storm planners were at fault, Bloch said “at this point in time it’s too early to call, and everyone deserves a fair investigation and a fair assessment”.

Bloch has compared the FPA’s stance on Storm to the treatment of citizens in a democracy. The FPA is clearly trying to avoid being brought into a trial of Storm by public opinion. In the meantime, financial planners may be suffering their own form of trial by public opinion.