FPA most influential group, says Shorten
The Assistant Treasurer and Minister for Financial Services, Bill Shorten, has declared the Financial Planning Association (FPA) has been the most influential financial planning body in terms of informing the direction of the Government on the Future of Financial Advice (FOFA) changes.
Addressing the FPA national conference in Brisbane, Shorten not only signalled the Government may be prepared to moderate its approach to mandatory fee disclosure statements as a result of feedback from the FPA, but that it also broadly endorsed the foundation provided by the FPA's code of professional conduct.
In what was interpreted as a direct slap at the more aggressive lobbying approach adopted by the Association of Financial Advisers, Shorten said that while some people had tried to adopt a tough stance, it had been the FPA which had influenced the Government enormously.
"The FPA has helped to explain to us the issues and how they impact planners," he said.
While not totally committing the Government to such a move, Shorten said the FPA had provided cogent reasons why the use of the term 'financial planner' should be restricted within Corporations Law.
On the question of the 11th hour inclusion of an annual fee disclosure requirement within the first tranche of the Government’s FOFA legislation, the minister said that on the basis of representations made by the FPA the Government was prepared to review the situation with respect to existing clients, retrospectivity and ensuring simplicity.
Shorten said he believed the financial planning industry needed to embrace the need for change and he was in no doubt that the FOFA changes would pass through the Parliament.
AUTHOR
Mike Taylor
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