The Association of Financial Advisers (AFA) has told a number of dealer group conferences that the Future of Financial Advice (FOFA) debate was "hijacked by the Industry Super Network (ISN)", and that ultimately, the industry was "wedged" by both the ISN and the Government.
The AFA analysis of what happened through the FOFA debate was that the outcome delivered higher barriers for advisers in the form of opt-in, fee disclosure and bans on commissions, while delivering lower barriers for superannuation providers – particularly those funds supporting the ISN.
However, AFA chief executive Richard Klipin told the dealer group conferences that notwithstanding the manner in which the FOFA outcomes were achieved, planners need to work within the new framework which has been delivered.
He told Money Management today that with the legislation having passed the Parliament, discussion was ongoing with the Treasury and the Australian Securities and Investments Commission, and there was a good deal of devil in the detail.
Among the approaches being recommended by the AFA are that planner members should get prepared to demonstrate value to their clients including having conversations, securing letters of engagement and following up with service delivery.
It suggests planners should start with new clients and engage with existing "engaged" clients at the time of their review.
Importantly, it suggests that planners treat their "disengaged" clients as new clients.
