FPA addresses crisis of confidence

“If there is a crisis of confidence in superannuation funds, financial markets and advice more generally, it should encourage people to make sure they’re getting the best advice and that the advice they’re getting takes into account their own and their family’s complete financial circumstances, not just their superannuation needs,” Financial Planning Association chief executive Mark Rantall (pictured) has said.

Responding to comments earlier in the week from Industry Super Network chief executive David Whiteley, Rantall said it was difficult for super fund members to trust whether they were in the right fund or getting the right advice.

“However, cost and the way a financial planner charges for their services should not be the primary focus – as is the case with the current ISN advertisements,” Rantall said.

Whiteley’s comments came with the release of an ISN campaign aimed at encouraging people to take advantage of the financial advice offering within their industry super fund. The FPA has now released a checklist encouraging planning clients to ensure that any advice they receive is being paid for by them – rather than product providers – to ensure that the advice is in their best interests.

The FPA has also advised people to check statements from super funds to ensure they are not paying for services they don’t receive, to check with advice providers about other choices they may have, and to check with planners whether inside or outside of a super fund that the advice provided is subject to the Corporations Act.