New industry body tells planners to lift game
TheFinancial Planners Federation of Australia (FPFA), a new industry group formed in January, has warned financial planners of being influenced by conflicts of interest and institutional inducements over their obligation to meet client needs.
“We’re strong believers that success for our clients depends on us having the freedom to go with the best options in the market at any given time, without being tied down to a product provider,” says federation spokesperson Chris Taylor.
The FPFA formed earlier in the year after its members felt the need for greater self scrutiny in the industry.
Executive officer for the FPFA Roz Pontifex says: “We are not influenced by banks, fund managers or insurance companies, but offer freedom of choice and free thinking.”
The federation intends to provide its members with a national alliance for marketing, business development and education, offering referrals within the network.
Membership is comprised of nine privately owned dealer groups, with the aim to grow a network of 13 like-minded groups and over 100 financial planners.
The FPFA does not intend to compete with trade bodies such as theFinancial Planning Association(FPA), but instead will insist that each group be a member of the FPA, hold an Australian Financial Services Dealers Licence, and have a minimum of five authorised planners.
The FPFA will offer advice to both individuals and companies, superannuation administration, and present to corporations on issues such as tax efficiency.
It is looking for an unlimited number of national corporations to partner with, including out-placement firms, legal groups, and convention organisers.
The group met for the first time in March and will next convene on May 15 to welcome new members and decide on potential partners.
Pontifex says no decision had been made on actual partner firms, potential revenue, or the split between corporate and individual clients.
The federation’s nine members includeQplan Financial Services, Taylor Bowring,The Salisbury Group, Positive Financial Solutions,Financial Planning & Life, Tulare Financial Planners, Financial Management Services andWestern Pacific Portfolio Planning.
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