FPA strikes back at Virgin boss

THE Financial PlanningAssociation (FPA) has struck back at Virgin boss Richard Branson’s attack on financial advisers, accusing the flamboyant English billionaire of “swanning into town” and making inaccurate statements that could harm investors.

Branson, who has announced plans to launch a superannuation fund in Australia in the lead up to fund choice, accused advisers of growing fat off exorbitant fees charged to clients.

In a tersely-worded statement released last week, FPA chief executive Kerrie Kelly said the comments would be harmful if they discouraged people from seeking financial advice.

“If his ill-considered statements, that do not reflect the reality of the regulatory requirements that now operate in Australia, put people off getting financial advice, then his approach is dangerous and not in Australia’s interest,” Kelly said.

“A wide range of superannuation approaches and choices are essential with the Australian approach, and new products that are appropriate and relevant must always be welcomed, but the real issue for retirement savings is long-term performance, not just fees.

“Financial planners are not there to promote Virgin products or any others.”

Kelly also highlighted Virgin’s lack of a track record in superannuation, saying “low fee products that do not give adequate returns are not as beneficial to Australians as products that give top net performance regardless of fees”.