Are you worth the trust placed in you?
At theend of last yearMoney Managementran a number of articles on the vexed issue of commission disclosure.
Among the many responses, some stated while disclosure is an issue to be tackled, financial planners and the financial services profession have other, possibly more important, issues to tackle.
Chief among these is the unresolved issue of the unfair taxation of superannuation which results in the nation’s retirement savings being slugged on the way into a superannuation fund, while it remains in the fund and when it is withdrawn.
The state of super must be championed by various industry bodies highlighting the fact that the current taxation regime does little to encourage people to contribute of their own volition. The taxes also need to be highlighted as an unfair and unjust grab on money that employers are forced to put away for retirement for employees, but yet the Government is happy to dip into on a regular basis.
Another issue that needs to be tackled, particularly by financial advisers themselves is the perception of financial planning as investment advice.
Many planners have had to deal with this problem, but the question remains: is it a problem that is made by ‘planners’ not offering full-service financial planning while claiming they do?
The current market conditions will further draw this issue out as some planners busily play catch up with their clients’ money to cover the fact they have supplied a glorified stock picking service and not planning advice.
The Financial Planning Association (FPA) has stated that its lead agenda point for 2003 is the quality of advice and as befits the peak industry association, this is a very admirable goal indeed.
However, this must be the goal of every financial planner if they wish to avoid being seen as the picker of the best unit trust.
Money Managementwill continue to cover these issues but genuine change lies in the hands of the financial services industry and its constituent parts.
The hard work of PS146 and the Australian Financial Services Licence has passed, now comes the task of proving we are an industry that is worth the trust and merit that is placed in it by the regulators, the employers and the public.
AUTHOR
Jason Spits
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