Bloch warns of new angle in debate

Jo-Anne Bloch

Financial Planning Association (FPA) chief executive Jo-Anne Bloch has warned members to expect the industry funds debate to move away from commissions to one that emphasises working in the ‘client’s best interests’.

Speaking at the 10th FPA Queensland Planners’ Forum in Brisbane yesterday, Bloch said: “This will be the tack industry funds will use, but by our own codes FPA members already have to work in the ‘best interests’ of their clients. However, in areas like industry funds and retail funds, we need to explore what ‘best interest’ means. We need to lift the debate back into the advice space.”

Responding to a question from the floor that industry funds spokesman, Garry Weaven, was “perverting the truth” and was a “dangerous man” to financial planners in the industry versus retail funds debate, Bloch admitted that despite his illogical argument, Weaven did “cleverly pick on some weaknesses, which we need to work on”.

“We will be addressing industry funds directly,” Bloch told delegates.

“We need to better explain to consumers the value of advice. Weaven is honing in on a soft spot and we need to counter this. We will stand up to him.”

Bloch said the FPA was unlikely to use a confrontational campaign due to the legal issues that surround such an approach, but instead focus on the value of advice that a professional financial planner can provide.