Industry to surprise in next shadow shop
By John Wilkinson
TheFinancial Planning Association(FPA) is confident its membership is well positioned to endure any future shadow shopping surveys due to marked improvements in industry standards and the transition to financial services reform.
According to FPA chief executive Kerrie Kelly, the new licensing regime will ensure planners perform well when the next Australian Consumers’ Association (ACA)/Australian Securities and Investments Commission(ASIC) shadow shopping survey is conducted.
“We would be comfortable with any survey that is conducted now… and the result would be very different,” Kelly says.
According to Kelly, the financial planning industry has changed significantly since the last survey was commenced almost two years ago.
“All fees and commissions are now disclosed and planners are offering advice for a fee,” she says.
FPA chairman Steve Helmich says planners have moved away from promising clients “silly returns” and are now giving advice on how they can achieve their financial goals.
However, Helmich admits the FPA still has a role to play in closing the gap between good and bad planners.
The FPA is also confident its members will fare well in the follow-up ASIC audits occurring after March 11.
“The quicker (the ASIC auditors) get out there the better. Most dealers will be throwing their doors open when they arrive,” Kelly says.
Any principal member that fails an audit and loses their licence will be in breach of the FPA’s membership rules and will be expelled, Kelly says.
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