Govt’s code-monitoring decision will save millions

Despite having formed a separate corporate entity and advertised for key personnel, the consortium of financial services bodies which aimed to establish a Financial Adviser Standards and Ethics Authority (FASEA) code monitoring authority have been jointly saved millions of dollars.

One of the reasons the consortium comprised of the Financial Planning Association (FPA), the Association of Financial Advisers (AFA), the SMSF Association, The Boutique Financial Planners, The Financial Services Institute of Australasia and the Stockbrokers and Financial Advisers Association of Australia was formed was because they could not have afforded establish and run a code-monitoring body singly.

However, the Government’s decision to effectively abort an industry-backed code-monitoring body to pursue the establishment of a single disciplinary body covering financial planners represents a substantial post-Royal Commission veto of industry self-regulation.

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The consortium had for months been seeking clarity from the Treasurer, Josh Frydenberg, on the Government’s intentions with respect to the Code Monitoring Authority because of its parallel commitment to the establishment of a Single Disciplinary Body for financial planners as recommended by the Royal Commissioner, Kenneth Hayne.

That clarity was finally delivered on Friday with the result that the consortium withdrew their application to form the code-monitoring body declaring that the announcement “makes it unreasonable for us to proceed”.

Both AFA chief executive, Phil Kewin, and FPA chief executive, Dante De Gori, expressed disappointment at the need to withdraw from the process given the amount of effort which had been put in.

The consortium had lodged an application for approval to form a code monitoring authority with the Australian Securities and Investments Commission (ASIC) last month and if status had been granted financial advisers, irrespective of membership of the sponsoring organisations, would have been required to sign up to and pay an annual fee to the authority.

While the Treasurer has made it clear that financial advisers and licensees are expected to adhere to the FASEA code of ethics, it will likely be more than a year before the Government establishes its single disciplinary body slated for the first half of 2021.

In the meantime, the Australian Securities and Investments Commission (ASIC) has been tasked with adjusting the regulatory settings to accommodate the interim period.

 




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Great.. another stupid Govt Dept taking the reigns.. the fat cat public servants are just licking their lips to create another taxpayer funded black hole.. but I guess the planners will be slugged another fee.. I wonder if the bright sparks have worked out what the fee will be when 10,000 planners leave?

Dear Friends and Professional Colleagues,

It's really not my style to beg. but i am begging you, can at least a few of you resign from membership of the FPA/AFA. these two are leading us down the garden path for the benefit of their masters the big institutions.

financial planners should not belong to these associations.

please for god sake, at least a few of you resign today and seek an alternative, such as the IPA ( i know they are an accounting body but you can get an associate membership and meet obligations, or the SMSF Association or the StockBrokers Association.

just choose an alternative, we need to send these people a message, a blow if we can, and the only blow they will take note of will be a cut to their salaries or a redundancy as they close down due to having no members or very few.

please do it on account of principle. stand for something!! say NO! say enough. I beg you.

I tried mate, there were no viable alternatives. They've carved out their monopolies and all they're doing with the Code Monitoring Body and the government alternative is just fighting over carcass which is what's left of the industry. We're a politically viable play thing and pinata to be beaten and milked until they find another gravy train to take advantage of. What we need is some public awareness into government overreach and the unintended consequences of over-regulation, the perverse incentives at play. It's passed the point of who to blame, we've been served up for dinner a long time ago.

you're not wrong. here we are in the salt mines, and there sits dante, mr. magoo on $300k

how many blood sucking leeches and parasites can one adviser feed

Well, it all makes sense. We pay fees to TASA, FPA, ASIC, Licensees. How many codes are we supposed to adhere to? There are too many snouts in the trough trying to crack the whip and looking for any negative behaviour concerning financial planners. We have not been given any slack. The Hayne Royal commission was a farce and damaging for the whole industry. The head kicking must stop as at it is doing no good. If this was a tough year with legislation ramming, be prepared for 2020. You haven't seen anything yet.

At the end of the day, funding a code monitoring body would have come out of the pockets of advisers or licensees (for salaried advisers). There were figures floating around of $500+ pa for such registration. Now that Government have announced the single-monitoring body, you just watch ASIC's Supervisory Levy (aka fee) increase from it's current $900+pa.

How much do you think the industry bodies would have charged.
As a CFP, I get charged $200 a year advertising fee for what ?
I have been a CFP since 2003 and not one client has come from any FPA advertising campaign, that is, if you can find that one exists nor as any client ever asked me what does CFP stand for !
I can now tell them now that FASEA has been imposed on all of us, it stands for absolutely nothing. Thank you FPA for appropriating dough off me for a number of years for no material benefit and you now think that we should all show integrity and ethics.
When did you think it should start with you ?

yeah but you are still a cfp(r) member though. that's the issue. you all complain that it's worthless in terms of marketing prowess, client confidence, standing in the public, amongst your peers, and regulators.

but you still remain a member. why ?

Love nothing more than be an ex member but, I am REQUIRED to be under the ASFL.
Understand?

but you still remain an AR of that AFSL. why ?

Plenty of AFSLs, including self licensing, don't mandate any association membership.

Anon, are you sure of your facts?

Anon, as reality stated, we are forced to be members of a professional association to be registered with the tpb. That applies to self licenced and every single dealership that is registered to provide personal advice. There is a list of the accepted associations on the tpb website for reference.

Need it to be a member of TPB etc. Would love nothing more than not to be but they have forced everyone to be a member of some association.

The only reason FPA/AFA etc wanted to run this code is to force everyone else to be a member.

Who is "they"? It's not the government. It's not ASIC. It's not TPB. In fact there is no law or regulator that requires financial advisers to be a member of any association.

If your dealer group is forcing you to join an association and you're not happy about it, get a new dealer group!

i just can't believe that guy Dante is still CEO. what does it take for these people to resign. have they no shame at all ?

and what of the people who continue to remain members. they are even worse than Dante.

Subscale industry associations with conflicts of interest and a poor track record of managing advisers were never going to fit the bill here. A little surprised they thought they could. Given changes in Fin Services Minster, it is highly likely the goalposts moved to catch all unawares. Once again demonstrating how poor this industry has been at managing Government relationships. Surely the AFA & FPA will need to merge now to have any chance of surviving financially. Time to put job preservation and egos to the side and focus on the interests of the advisers.

the ignorance, naivety, of advisers who are members of fpa and afa has no bounds.

you really think they are going to put their self interest behind your interest, to help advisers.

i mean just read the second line out loud. it's laughable

you people just don't get it. the only thing they understand is when they have to process 1,000 member resignations.

that's it. 1,000 members resign maybe they will get a hint that something is amiss (probably not)

Honestly, these bureaucrats should be expected to adhere to the same level of educational, ethical and moral standards as they expect from us financial advisers. The lack of timeframes, uncertainty, and general incompetence illustrated by these individuals is a downright disaster. Shame, Shame, Shame.

@ anonymous.
Why am I still a member of the FPA and hold CFP designation.
The answer is simple, we are required to be a member of some kind of professional body whether it be the FPA, AFA or SPAA to be registered with either the TPB or the Complaints Resolution Body.
Now which one of those do you think is the lesser of 3 evils ?

If you did the study you wouldn't have to be a member of an association to be registered with the TPB. I am a financial planner registered with the TPB and not a member of any association.

Yeah funny that, despite having a Masters of Financial Planning and various other qualifications, apparently not. I am exempt from EITHER the tax subject or the law subject but not both at the same time. Work that out.

did you masters degree or other qualifications have adequate coverage in commercial law or taxation law?

I can choose to be exempt from one or the other (tax/commercial law). So basically the content was sufficient to get exemptions from both subjects, but not both at the same time. That makes no sense to me, you've either covered it off or you haven't surely.

I am not going to go back and study something I am already able to get an exemption from just due to a technicality that I cant be exempt from both at the same time. Id rather study something meaningful further.

Its all just a circus really isnt it.

i don't blame you it's totally stupid. but unfortunately for us. the stupids are in charge.

did you read the other story. asic are saying disclosure is ineffective. well turds, we kinda had been telling you that for a long time didn't we retards!

ditto

I have great news for you Aleycat. Whoever said you need to be a member of FPA, AFA or SPAA to be registered with TPB and AFCA misled you. It's not true. There is no legal requirement for any adviser to be a member of an association.

Anon - you need to either meet the education standards set by the TPB or become a member of a professional association in order to qualify for registration. Very few Advisers meet those standards because they require study in law and taxation so the easiest option was to become an association member.

SPAA is now called the smsf association. go with them. least terrible of the lot.

The Good thing is that this is now an opportunity for Hedware to be the 2023 Chairperson.

The Financial Planning industry is just a joke. How embarrassing. Dante De Gori appears on stage at the Royal Commission and the outcome is that Chief Justice Haynes states that the industry associations can't be trusted to self regulate. Yet he's still CEO and FPA members fully support him. You idiots. Now the outcome when a Government body is involved is even more red tape, than industry appointed self regulated bodies. People are committing suicide and you all people are just sitting back doing nothing, happily renewing FPA membership (in bulk paid by AMP). I can guarantee you, in a few years this body being Chaired by Bill Shorten, headed up by several ex Union thugs, with a dash of Industry super fund heavy weights....like to see the outcome of you're complaint then guys.

exactly. there are a lot of tax agent associations you can be members of.

https://www.tpb.gov.au/recognised-professional-associations

you guys want met to fill out the application form too

i think hedware is a fake troll.

@ Aleycat. I'd bet you've never ever emailed the FPA and voiced your dissatisfaction and you'll vote for the same old people each year. How about a) you do a course in Australian Tax Law and a subject in Commercial Law costing $3,500 and drop the FPA membership...but that would involve reading study material whilst in airport lounges. b) you downgrade your membership as a protest to associate level and pay $500. c) you join the Stockbrokers and Financial Planners Association for $550 a year.

I'm with this guy with Joe Blow. Blow for President.

my dream is for the FPA /AFA to close because they have no members

@ Joe blow,
First off, your assumptions are inane.
What makes you think I haven't had discussions with former FPA CEO's Jo-Anne Bloc and Mark Rantell.
What makes you think I would vote for any of the current or previous Board members.
They are all oblivious to the problems facing the rank and file members of the FPA.
because they've failed to stand up to governments and other vested interests.
I can't be all things to all people and what you are suggesting is nonsense.

I hate to disappoint you but I did study Tax Law at Macquarie University before 2003.
In fact my son who is a lawyer studied under the same associate professor of Law as I did, 6 years after I did.
Guess what, none of my qualifications obtained prior to 2013 as far as I can ascertain are now acceptable under FASEA including the full Dip of Financial Planning, courtesy of Deakin University.
Why would I drop my status to Associate level when I worked hard enough to get my CFP designation because it was once perceived as something better.
It now only has little relevance because the FPA has shown that it doesn't have the will or the capacity to fight governments and regulators , no matter how incompetent they appear to be.

Dear FPA,

As a FPA member, I am dissatisfied with the amount of Government intervention, regulation and affordability of advice for ordinary Australians. Your Charter and Mission is to prevent over regulation, increase trust in financial advice, represent advisers. You have failed. The recent appearance of your CEO at the Royal Commission and the subsequent establishment of a Government Code Monitoring body directly resulting from the CEO's appearance is a disappointing step and a missed opportunity. I therefore request you terminate the employment of this person known as Mr Magoo.

there you go.... stop your FPA moaning, stop the Government intervention NOW, simply cut and paste that into an email and you're set....to do nothing and be a member means your complicit after all. About time heads roll. It's a message we need to send to Treasury and Government NOW that we're changing, send it before your Business Valuation drops even further or another planner commits suicide.

@ Joe blow,
First off, your assumptions are inane.
What makes you think I haven't had discussions with former FPA CEO's Jo-Anne Bloc and Mark Rantell.
What makes you think I would vote for any of the current or previous Board members.
They are all oblivious to the problems facing the rank and file members of the FPA.
because they've failed to stand up to governments and other vested interests.
I can't be all things to all people and what you are suggesting is nonsense.

I hate to disappoint you but I did study Tax Law at Macquarie University before 2003.
In fact my son who is a lawyer studied under the same associate professor of Law as I did, 6 years after I did.
Guess what, none of my qualifications obtained prior to 2013 as far as I can ascertain are now acceptable under FASEA including the full Dip of Financial Planning, courtesy of Deakin University.
Why would I drop my status to Associate level when I worked hard enough to get my CFP designation because it was once perceived as something better.
It now only has little relevance because the FPA has shown that it doesn't have the will or the capacity to fight governments and regulators , no matter how incompetent they appear to be.

@ Joe Blow,

hear hear, Blow for President. He will get to the down and dirty blow by blow.

vote for Joe

I trust that The Honorable Mr Frydenburg is going to reimburse our Associations for the costs that they have already invested in these Code Monitoring Bodies before he changed his mind. The Association's money is after all our money. Otherwise another hidden cost incurred by the directionless ship of bureacracy.

Your FPA has been there for you our members at all times. We advocate and lobby on your behalf
Set up and administer a code. Provide education services Promote financial planning and refer clients to you . Instead of always complaining like toddlers about FPA your should ask what can I do for FPA instead of always wanting FPA to do everything for you You all talk big behing your keyboards and troll the FPA and say you will cancel your membership of FPA. You never do because without the FPA you are nobodies. Cancel your membership say good bye to your cfp status which you can only have because of the FPA. Keep talking big but in reality you know without FPA you are nothing. I expect an apology to FPA both written and verbally to our office at 02 9220 4500
You should be grateful for all what we have done for you

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