The Investment and Financial Services Association (IFSA) has thrown its weight behind financial planning dealer groups amidst market volatility and a number of high profile company collapses.

In a paper entitled An insight into the structure and operation of Financial Advisory Networks, the peak body says that without the support of dealer groups, or finan­cial advisory networks (FANs), it might not be possible for independent planners to operate other than within large institutions.

IFSA highlights the role dealer groups play in raising standards in professional development, assisting financial planners with compliance obligations, and dispute resolution.

“Often overlooked and of particular value is the special role FANs play when mar­kets hit difficult periods,” says IFSA CEO Richard Gilbert.

“Advisory networks can help ensure that investors make informed and rational de­cisions when turbulence hits or there is a market downturn and people need clear, timely and accurate information to assist them in their decision-making.”

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