FPA want to act as circuit breaker for CBA compensation
The Financial Planning Association (FPA) has volunteered to track down Commonwealth Bank (CBA) planning clients affected by poor advice to line up compensation.
The Association offered to form a joint committee with the CBA and negotiate a fair sum to make up for their losses, as well as ethics training for CBA-aligned planners.
"The FPA will volunteer senior members of its leadership team to serve on the working group to ensure proper compensation for clients," FPA CEO Mark Rantall said.
He suggested the committee be chaired by an independent industry voice.
Rantall said the compensation arrangement was crucial to restoring trust in the financial planning profession, which he says has been badly impacted by the recent fallout.
"We believe the clients impacted by untrustworthy advice need a voice," he said.
"The FPA stands with those clients and is calling for a clear plan of action from the CBA to fully compensate all clients and ensure we don't see a repeat of these appalling events in the future."
Rantall also suggested an investigation of the CBA's framework and potential training for CBA employed and aligned planners.
Recommended for you
The Reserve Bank of Australia (RBA) has lowered rates to a level not seen since mid-2023.
Financial Services Minister Stephen Jones has shared further details on the second tranche of the Delivering Better Financial Outcomes reforms including modernising best interests duty and reforming Statements of Advice.
The Federal Court has found a company director guilty of operating unregistered managed investment schemes and carrying on a financial services business without holding an AFSL.
The Governance Institute has said ASIC’s governance arrangements are no longer “fit for purpose” in a time when financial markets are quickly innovating and cyber crime becomes a threat.
