AFA points to remuneration conflicts
The Association of Financial Advisers (AFA) has acknowledged that conflicts of interest exist at all levels with respect to adviser remuneration.
In a policy update delivered to members in the wake of the Financial Adviser Standards and Ethics Authority (FASEA) final legislative instrument for the Code of Ethics, the AFA’s policy director, Phil Anderson pointed to the new Standard 3 which stated: “You must not advise, refer or act in any other manner where you have a conflict of interest or duty”.
He suggested this might be practically problematic.
“We have some practical concerns about the reality of this given the extent to which conflicts of interest exist at all levels and with the different adviser remuneration arrangements,” Anderson said.
Anderson and AFA chief executive, Phil Kewin are currently in Canberra meeting with politicians including Australian Conservatives leader, Senator Cory Bernardi.
Recommended for you
Sequoia Financial Group has declined by five financial advisers in the past week, four of whom have opened up a new AFSL, according to Wealth Data.
Insignia Financial chief executive Scott Hartley has detailed whether the firm will be selecting an exclusive bidder for the second phase of due diligence as it awaits revised bids from three private equity players.
Insignia Financial has reported a statutory net loss after tax of $17 million in its first half results, although the firm has noted cost optimisation means this is an improvement from a $50 million loss last year.
With alternative funds being described as “impossible” for fund managers to target towards advisers without the support of BDMs for education, Money Management explores the evolving nature of the distribution role.
