FPA welcomes support for product/advice separation
The Financial Planning Association (FPA) has taken heart from reports that the Australian Securities and Investments Commission (ASIC) has endorsed elements of its 10-point plan intended to ensure the formal separation of product sales from the provision of advice.
FPA chief executive, Mark Rantall said he welcomed ASIC endorsement for elements of the FPA's approach, and said his organization had also received positive feedback from a number of dealer groups.
At the core of the FPA 10-plan sits the enshrinement of term "financial planner/adviser" together with mandated minimum education requirements to achieve that designation and a requirement that those people providing product-related information are clearly identified as doing so.
While welcoming the positive responses of ASIC and dealer groups, Rantall acknowledged that a core issue would be the degree to which the FPA approach was reflected in the final recommendations of the Senate Committee reviewing the issue and how this was then reflected in Government policy.
One of the challenges confronting the implementation of the FPA 10-point plan is convincing the Government to change its mind on the question of enshrinement of the term "financial planner/adviser" in circumstances where the Minister for Finance and Acting Assistant Treasurer, Senator Mathias Cormann, has publicly stated he does not believe such a move is necessary.
However with enshrinement put to one side, the Government is understood to be supportive of the development of a regulatory regime which would better separate the provision of comprehensive financial advice from product sales.
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