FPA conflicts principles complete
The Financial Planning Association will release the final version of its principles to manage conflicts of interest on the day before chief executive Kerrie Kelly leaves her post.
The FPA announced last night that the final version of the long awaited guidelines will be officially released tomorrow.
A spokesperson for the FPA said there would not be an announcement about Kelly’s replacement at tomorrow’s press conference.
Released in draft form last May, the conflicts guidelines were refined last November to include four principles. It is expected the main thrust of the finalised principles will be to encourage planners to separate the cost of advice from the cost of investment products.
In relation to the failed Westpoint group, the FPA has confirmed it has received another four complaints against its members, of which it is now investigating, bringing the total number of complaints to 10.
Planners who put any of their client’s money into failed Westpoint products have been advised by the FPA to consult their lawyer and their professional indemnity insurer. Members have also been advised to conduct an audit of related statements of advice to make sure they are compliant.
Legal proceedings against up to 100 financial planners coordinated by lawyers Slater and Gordon will attempt to recover from planners close to $200 million.
Slater and Gordon’s Joanne Rees told Money Management this morning any writs against planners would not be filed for at least another two weeks, as the law firm has to peruse the details of around 2,000 individual investor claims.
A number of financial planning dealer groups revealed to Money Management in January that they had some exposure to Westpoint. These included Professional Investment Services, Mawson Group, Bongiorno Financial Advisers and the soon to be shut down Deakin Financial Services.
On releasing its half-year annual results yesterday, Perth-based Deakin’s holding company DKN confirmed it had received several claims in relation to advice given over Westpoint and admitted that more could be on the way.
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