Watchdog gets behind compliance

The Australian Consumer and Competition Commission (ACCC) has put its weight behind the Financial Planning Association's (FPA) national compliance program.

ACCC chairman, Professor Allan Fels told delegates at yesterday's FPA convention that the introduction of the National Quality Assessment Program was a big step forward in monitoring issues of compliance within the industry.

"This program is a positive step forward and will benefit both clients and the financial services industry," he says.

The program puts renewed emphasis on compliance to FPA standards, including a random audit by the FPA. It will be fully operational in the new year, has four key components. These include a self-assessment checklist, a statement of compliance, a quality assessment review and internal complaints handling guide.

The self-assessment checklist is a questionnaire containing practical guidelines about complying with FPA standards. The statement of compliance must be signed off as a declaration that the compliance meets the FPA standards. The quality assessment review randomly selects principal members over a three-year period and allows the FPA to verify all information provided.

FPA chief executive Ken Breakspear says the program is not a method of "policing or catching out" financial planning groups, but instead will assist the associations principal members to comply with their obligations under the FPA's code of ethics and rules of professional conduct.

"Its not about policing or catching people out. They can be assured of good advice coming out of this and the avoidance of disaster. It's about prevention rather than a cure," Breakspear says.