Fee disclosure requirements problematic

amp/compliance/FPA/SOA/disclosure/financial-planning/FOFA/association-of-financial-advisers/chief-executive/government/money-management/financial-advice/financial-advisers/planners/

6 May 2013
| By Staff |
image
image
expand image

The fee disclosure statement arrangements within the Government's Future of Financial Advice (FOFA) changes are ultimately going to deliver clients less information than they are currently receiving, according to Premium Wealth Management chief executive Paul Harding-Davis.

Davis has told Money Management that he is struggling to see the benefits the fee disclosure statement arrangements will deliver to consumers, except that they will be receiving the more limited information provided in the statements more frequently.

Harding-Davis' criticism of the fee disclosure statement arrangements have come at the same time as groups such as the Association of Financial Advisers have expressed concern that the changes will create particular challenges for planners who have recently purchased new books of clients.

They said this complexity is likely to be magnified if the purchase of those books of clients was brokered through a third party major such as AMP Limited or MLC.

"Much will depend on just how much information relating to that book of clients was captured and delivered to the new planner, enabling them to understand what was promised and what, ultimately, was delivered," one spokesman said.

Harding-Davis said the bottom line was that the fee disclosure statement arrangements were unduly administratively complex and had the potential to create a real headache for those planners seeking to service recently-acquired books of clients.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

So we are now underwriting criminal scams?...

1 month 3 weeks ago

Glad to see the back of you Steve. You made financial more expensive, not more affordable as you claim, and presided ...

2 months ago

Completely agree Peter. The definition of 'significant change is circumstances relevant to the scope of the advice' is s...

4 months ago

Entireti has unveiled the new name for the AMP financial advice businesses that it acquired last year....

4 weeks ago

A Sydney financial adviser has been permanently banned from providing any financial services, with the regulator deriding his “lack of integrity, trustworthiness and prof...

2 weeks 6 days ago

Minister for Financial Services, Stephen Jones, has provided further information about the second tranche of the Delivering Better Financial Outcomes (DBFO) reforms....

1 week 5 days ago

TOP PERFORMING FUNDS