Change in Government will not stop reform
The Financial Planning Association (FPA) is committed to financial services industry reform, regardless of whether the current Government is in place after the Federal Election.
New FPA chief executive Mark Rantall said a lot of the reforms currently under discussion were not being contemplated by the Federal Opposition.
"My understanding at this stage is that they are looking to retain opt in, and they are not supporting the banning of commissions on investments or superannuation," he said.
"But in fairness, they are probably still formulating their views around some of those things."
Rantall stated that the FPA is committed to certain fundamental changes, which it will continue to fight for regardless of who is in power.
"We are absolutely carrying through on the removal and the transition away from commissions on investments and superannuation," he said, adding the FPA would also oppose reforms it felt would not benefit the industry and consumers, such as the proposed ban on insurance commissions.
FPA deputy chief executive Deen Sanders said much of the current reform program is actually fixing yesterday's problems.
"The reality is that the profession has dealt with quite a lot of substantive issues on the table, like conduct through a more improved code of professional practice," he said. "There are no expectations that the law will go beyond our expectations of professional practice."
He reiterated Rantall's point that those things that would clearly prove to be administratively burdensome and might result in consumer detriment, like the 'opt in' for financial advice reform, would not be supported by the FPA.
Recommended for you
ASIC has released the results of its first adviser exam to be held in 2025, with 241 candidates attempting the test.
Quarterly Wealth Data analysis has uncovered positive improvements in financial adviser numbers compared with losses in the prior corresponding period.
Holding portfolios that are too complex or personalised can be a detractor for acquirers of financial advice firms as they require too much effort to maintain post-acquisition.
As the financial advice profession continues to wait on further DBFO legislation, industry commentators have encouraged advisers to act now in driving practice efficiency.
