AFA disputes FPA's commissions stance
The Association of Financial Advisers (AFA) has confirmed there will be no industry organisation consensus on the question of phasing out commissions for financial advice by publicly opposing the position adopted by the Financial Planning Association (FPA).
In doing so, the AFA has suggested that its position is more representative of the interests of financial advisers.
The chief executive of the AFA, Richard Klipin, said the FPA consultation paper proposing the phasing out of commissions brought into question the role of professional associations as well as the future of the profession.
He said the AFA was concerned that banning commissions might make comprehensive financial advice unaffordable for consumers at the very time they needed it most.
Klipin said the fees versus commissions debate was fixated on price when it should be focused on value.
The AFA comments on the FPA’s consultation also appeared to assert its position as a representative organisation of financial advisers, with the AFA’s national president, Jim Taggart, claiming members did not want or expect their professional body to tell them how to run their businesses.
“At the moment, our advisers are free to choose the business model that best suits them and best suits their clients,” he said.
For his part, Klipin said the AFA would remain resolute and focused on its role of supporting its members.
AUTHOR
Mike Taylor
Recommended for you
An adviser has received a written reprimand from the Financial Services and Credit Panel after failing to meet his CPD requirements, the panel’s first action since June.
AMP has reported a 61 per cent rise in inflows to its platform, with net cash flow passing $1 billion for the quarter, but superannuation fell back into outflows.
Those large AFSLs are among the groups experiencing the most adviser growth, indicating they are ready to expand following a period of transition and stabilisation after the Hayne royal commission.
The industry can expect to see more partnerships in the retirement income space in the future, enabling firms to progress their innovation, according to a panel.
