The 2011 Financial Planning Association conference has ended in Brisbane with a lively Q&A session featuring several industry heavyweights the highlight of Friday’s programme (18 November).
Facilitator Tony Jones, host of the ABC’s Lateline and Q&A, ensured the debate on the future of financial advice flowed smoothly with any political grandstanding on FoFA reforms quickly brought back on point.
Federal Member for Oxley, Bernie Ripoll, and Shadow Minister for Financial Services and Superannuation, Mathias Cormann, clashed repeatedly on the scale and timing of the Government’s reforms.
The latter said the Government’s agenda had been hijacked by parties with vested interests in the outcome and committed the Opposition to overturning elements of the reforms such as ‘opt-in’ if elected to office.
Playing the part of pantomime villain was Industry Super Network spokesperson, David Whiteley, who said most negative reaction to “opt in” was based on the misconception that the current system was working optimally.
FPA chief executive, Mark Rantall, said he was disappointed that the debate had devolved to the extent that ‘opt in’ had become the focal point of the reform agenda.
Financial planner Greg Cook and Professional Planner editor Simon Hoyle both added their industry experience to the discussion.
Opt-in takes a long-term (Adviser / Client) relationship and dumbs it down into 1 or 2 year chunks, which will ultimately mean clients will focus more on short-term outcomes and actions.
The new proposal for annual fee / income disclosure basically takes the current disclosure requirements from an SOA and basically puts more admin onto the Advisers. I mean, what is wrong with the current process (inform clients of anything new / changed from previous disclosures)?
The FOFA debate is limited because the FPA finds itself incapable of responding with honesty about the structure of the industry. The Industry Super Network are political experts that have dominated the debate for years due to the FPA wedging itself into a corner. The fact is the majority of FPA members are tied or employed by product groups. Product groups that fund the FPA.
The Q+A session which I attended at the FPA conference was lively and showed that the goivernment was using the aged old Union organisers tactic of asking for an excessive log of claims that can be negotiated back under the the false belief that this is genuine negotiation between parties to get to the postion that hey were wanting in the first place. Make no mistake that this Government is doing the bidding for the Union run Super funds and are conflicted by their Poltical Union and agenda for control of Super in Australia
I Have no problem with optin, as long as it applies accross the whole industry including retail and industrial funds.
All FOFA legislation should be non discriminatory and not just aimed at one section of the industry.