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.
Recommended for you
Money Management examines the share price of financial advice licensees over one year to 31 March, with M&A actions in the final quarter having a positive effect for two licensees.
A $3.5 million settlement for victims of Melissa Caddick has been approved by the Federal Court following an initial agreement last December.
The Reserve Bank of Australia has delivered its first rate decision since the introduction of a new board structure last month.
Digital advice provider Otivo has launched an interactive tool, powered by artificial intelligence and Otivo’s own advice engine, to help answer client questions.