Grandfathering still in limbo

The financial planning industry is about to enter its third month of virtual immobility as it awaits clarity from the Treasury around grandfathering. 

Many financial planners who had intended to change licensees in July and August placed their plans on hold because of fears that under the interpretations currently being applied by the Federal Treasury they would lose the grandfathered remuneration status which applies to existing clients. 

Financial Planning Association (FPA) chief executive Mark Rantall said his organisation had been in close contact with the Treasury but there had been no definitive answer on the grandfathering issue. 

He said he believed it was a matter that needed to be made a priority by the new Government. 

“Whilst every case is different, it [clarity] is critically important to financial planners looking to change licensees or sell their business,” he said. “This matter needs to be prioritised to ensure financial planners have clarity in their business decisions and to ensure an active and competitive market.” 

Premium Wealth Management chief executive Paul Harding-Davis said there was no question that the lack of clarity from the Treasury had ensured many planners would delay a move. 

“I know of multiple people who are being very cautious,” he said. “And who can blame them when you consider how a move might jeopardize the grandfathered nature of their remuneration.”