FOFA a prerequisite for professionalism – Kell
Financial planning will struggle to become a profession if it fails to embrace the thrust of the Future of Financial Advice (FOFA) changes, according to Australian Securities and Investments Commission (ASIC) Commissioner Peter Kell.
Kell told a Money Management/Financial Services Council thought leadership event this week that the FOFA process was now "in the home straight" but that it was important that those in the industry embraced the underlying purpose of the legislative and regulatory changes.
"We all need reform to improve the quality of advice and increase the level of professionalism," he said, describing an environment in which product distribution was no longer placed ahead of the delivery of advice.
"The industry will struggle to become a profession if we don't embrace the need for that change," Kell said.
The ASIC Commissioner painted a picture of the current transition towards the new FOFA environment as being one in which those planners who were providing good advice were finding it a case of business as usual, while others would need to embrace change.
He suggested that there was still too much advice which would be regarded as poor.
Recommended for you
A financial advice firm has been penalised $11 million in the Federal Court for providing ‘cookie cutter advice’ to its clients and breaching conflicted remuneration rules.
Insignia Financial has experienced total quarterly net outflows of $1.8 billion as a result of client rebalancing, while its multi-asset flows halved from the prior quarter.
Prime Financial is looking to shed its “sleeping giant” reputation with larger M&A transactions going forward, having agreed to acquire research firm Lincoln Indicators.
An affiliate of Pinnacle Investment Management has expanded its reach with a London office as the fund manager seeks to grow its overseas distribution into the UK and Europe.
