FPA and IFSA warn industry funds on planning
Jo-Anne Bloch
Australia is confronted by a shortage of financial planners capable of leading to spiralling levels of remuneration, according to the executive director of the Investment and Financial Services Association, Richard Gilbert.
Gilbert used an address to this week’s Conference of Major Superannuation Funds (CMSF) on the Gold Coast to warn there was “a surging demand for advice which is outpacing supply”.
What is more, he said the workings of the Financial Services Reform Act had not been sympathetic to scaled advice or more efficient methods of delivery, meaning the industry at large and the Australian Securities and Investments Commission needed to collaborate to come up with solutions capable of boosting both adviser numbers and throughput.
The chief executive of the Financial Planning Association, Jo-Anne Bloch, also addressed CMSF and called for a united approach between planners and industry funds to the delivery of quality advice to consumers.
Speaking just days after Industry Funds spokesman Garry Weaven had used the conference to reinforce his calls for legislation imposing an obligation on planners to provide advice in the best interests of clients, Bloch said it was time to recognise how heavily regulated the financial advice industry was.
“Recognising that the advice industry is heavily regulated, shouldn’t we embrace the fact that there are different ways to deliver advice,” she said.
“As long as there is tough regulation and as long as there is full disclosure and transparency, consumers should be able to choose whether they need advice, whether they want advice relating to a product only, or whether they want more complex advice, which might include a whole lot more than super.”
Bloch said that a heavily regulated model should be capable of overcoming arguments about fees and commissions and that the real debate should now be about the delivery of advice across the industry to those who need it and want it.
AUTHOR
Mike Taylor
Recommended for you
The Australian financial advice industry has risen by more than 20 advisers this week, with nearly half joining WT Financial and Sequoia.
Two financial advice professionals have shared their tips for success when building an effective Professional Year program as more advisers look to bring on junior staff to their practices.
Numbers are in for 2024, with Wealth Data confirming how many advisers left during the calendar year and which business models saw the largest growth in terms of new licensees.
Praemium has seen its highest net inflows in over two years for Q2 FY25 as its Powerwrap platform returns to inflows after five consecutive quarterly outflows.
