FPA creates distance between advisers and LIC debate

29 January 2020
| By Mike |
image
image
expand image

The Financial Planning Association (FPA) has effectively distanced advisers from the current debate around stamping fee exemptions for Listed Investments Company (LIC’s) and Listed Investment Trusts (LIT’s) as part of its response to a consultation initiated by the Treasurer, Josh Frydenberg.

While welcoming the consultative process, the FPA chief executive, Dante De Gori made clear that advisers were not part of the remuneration equation flowing from the LIC and LIT regimes.

Referencing the FPA’s 2009 launch of the FPA Code of Professional Practice and the FPA Remuneration Policy, De Gori noted the best interests requirement and the principle of client-directed payments that had been reflected in the terms of the Future of Financial Advice (FoFA) reforms.

“At this point in Australia, all other forms of product directed payments that a financial adviser receives from clients, have been banned, leaving most financial planners only receiving fee for service payments,” De Gori said.

“Between 2009 and 2012, all of our members transitioned away from these payments to ensure that clients are receiving unconflicted advice. As a result, FPA members currently receive on average around 8% of their total revenue from investment commissions, with the majority of this being phased out by 1 January 2021 when grandfathered commissions will cease,” he said.

“The FPA supports the government’s efforts to improve the quality of financial advice that all Australians receive. Ensuring that people receive unconflicted advice, that is in their best interests, is vital to the provision of financial advice that Australians can trust and rely on.”

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

GG

So shareholders lose a dividend plus have seen the erosion of value. Qantas decides to clawback remuneration from Alan ...

2 months 1 week ago
Denise Baker

This is why I left my last position. There was no interest in giving the client quality time, it was all about bumping ...

2 months 1 week ago
gonski

So the Hayne Royal Commission has left us with this. What a sad day for the financial planning industry. Clearly most ...

2 months 1 week ago

A Sydney-based financial adviser has been banned from providing financial services in the interest of consumer protection after failing to act on conduct concerns. ...

3 weeks 3 days ago

ASIC has cancelled the AFSL of a $250 million Sydney fund manager, one of two AFSL cancellations announced by the corporate regulator....

3 weeks 1 day ago

Having divested its advice business in August, AMP is undergoing restructuring in at least four other departments amid a cost simplification program....

2 weeks 5 days ago