FPA urges forward-looking approach to FOFA outcome
The Financial Planning Association (FPA) has written to its members giving them an audit of outcomes from the Future of Financial Advice (FOFA) bills and declaring that "we should celebrate the outcomes the FPA has managed on your behalf thus far".
The e-mail letter, signed off by FPA chairman Matthew Rowe, lists the achievements "including the major concessions made to the controversial opt-in proposal and the specific recognition of your professional difference".
"The heavy lifting on achieving these concessions was achieved not by bickering from the sidelines, but by dogged persistence and absolute passion for achieving the right outcome," Rowe's message to members says.
Rowe pointed to the final House of Representatives vote on the legislation saying the 64-59 outcome "means that the Bill would always have been carried".
"This margin clearly demonstrates that in our negotiations with the Independents and Government we gained the best ground we could for our members, the community and our profession," he said.
"You may have heard contrarian, disparaging comments or read public statements in the media from others who have had nothing else to offer through much of the debate," Rowe said.
"I urge you to dismiss these doubters and recalcitrants for what they are.
"Your FPA representatives should be congratulated for their persistence and passion in all of their dealings with FOFA stakeholders - including Government and the cross-benches."
He said it was easy to sit on the sidelines and criticise, much harder to stay in the fight and persistently demonstrate credibility and offer real challenges to the government of the day.
Commenting on the outcome of events last week, FPA chief executive Mark Rantall told Money Management he believed it was time for the industry to put aside any bitterness from recent events and to move ahead together.
He said the FPA remained opposed to opt-in but believed the class order relief and the early lodgment of the FPA's code of conduct with the Australian Securities and Investments Commission might obviate this problem for members.
In his letter, Rowe pointed out that, subject to detail, 'opt-in' notices would now only be required for new clients from 1 July, 2013.
"As a member of the FPA - a body already recognised by the Courts and FOS [Financial Ombudsman Service] as the premier professional standards body - we will work hard to negotiate class order relief so that 'opt-in' will not apply to you as a recognised professional," it said.
Recommended for you
ASIC has released the results of its first adviser exam to be held in 2025, with 241 candidates attempting the test.
Quarterly Wealth Data analysis has uncovered positive improvements in financial adviser numbers compared with losses in the prior corresponding period.
Holding portfolios that are too complex or personalised can be a detractor for acquirers of financial advice firms as they require too much effort to maintain post-acquisition.
As the financial advice profession continues to wait on further DBFO legislation, industry commentators have encouraged advisers to act now in driving practice efficiency.
