When Matthew Rowe last month conducted his last Financial Planning Association (FPA) chairman’s dinner in the Panorama Suite of the Adelaide Convention Centre it represented the closing of an important chapter in the FPA’s history.
That chapter, traversing two terms in the chairmanship, saw the FPA begin the process of seeking to transform itself from a somewhat conventional industry/lobbying group into a professional association with aspirations to be viewed in similar fashion to groups such as the Australian Medical Association.
Undertaking such a transformation was never going to be easy, particularly when such a strategy was being pursued in the aftermath of the collapse of Storm Financial and while a Federal Labor Government and its natural constituency in the industry funds movement were pursing their own agendas.
The former Labor Government was pursuing the development and implementation of its Future of Financial Advice (FOFA) legislation, while those industry superannuation funds represented by the Industry Super Network/Industry Super Australia were seeking to ride the policy bow-wave to achieve their own objectives.
Put all of this together with the polling reality that the Australian Labor Party was unlikely to win a third term, and the challenging environment which confronted the FPA becomes obvious and probably explains why the task is not yet complete.
That mistakes and political mis-steps were made along the way is undeniable, particularly those mis-steps associated with the final-stage negotiations of the FOFA legislation as it was being moved through the House of Representatives and the Senate.
It is now nearly 14 months since the election of the Abbott Government but there are those who still reference the fact that while now Federal Treasurer, Joe Hockey and now Minister for Finance, Senator Mathias Cormann, were fighting to secure key amendments to the FOFA bills, it was revealed that the FPA was negotiating behind the scenes with Industry Super Australia.
The problem for the FPA was that the political calendar expired and a Coalition Government was elected before the crucial benefits of those FOFA negotiations, including enshrining the term ‘financial planner/adviser’ could be achieved and both Hockey and Cormann have shown little interest in pursuing the matter.
Amid all the fall-out around the Commonwealth Financial Planning enforceable undertaking, the FPA has succeeded in prosecuting its professionalism agenda, including improved educational qualifications, membership of a professional body and codes of conduct – something which has been broadly endorsed by all the banks and AMP.
Whatever assessments may be made of Matthew Rowe’s time as chairman of the FPA and the manner in which he and FPA chief executive, Mark Rantall, went about prosecuting the evolution to professional body there can be no doubting that progress has been made and that one of the key milestones – profitability – has been achieved.
Removing the funding provided by the banks and major dealer groups created a significant revenue black hole for the FPA, but it is one that has been filled and membership is on the rise thanks to the recent decisions on professional body membership undertaken by the major banks and AMP.
All in all, Rowe can probably feel satisfied that he has provided leadership and helped the FPA navigate one of the most challenging periods in its history and that with his departure and the ascension of Neil Kendall to the chairmanship, a page will be turned and a new chapter written.
Mike Taylor
Managing Editor
