The chief executive officer of the Financial Planning Association of Australia (FPA), Mark Rantall, has denied that a deal has been struck with Industry Super Network (ISN) on the contentious issue of opt in.
Recent reports have suggested the FPA and ISN have settled on a compromise option that would see opt in introduced as part of the Future of Financial Advice (FoFA) legislation, but on a trial basis only, in return for ISN support for the term “financial planner” being enshrined in legislation.
Rantall says he has not seen the document on which reports of a deal has been based. He says the source of the document is unclear.
“No one has shown me the document, so someone has leaked a document to the media, but it’s not dated or signed, and I can’t talk about a document that has not been provided to me,” he says.
“We do not support opt in; we have never supported opt in; and we do not think it’s appropriate legislative policy.
“Where we are at at the moment is talking to people who make these decisions. The reality is that the people who make these decisions will be the government and the independents. Are they talking to us? Absolutely.”
Rantall says the FPA has been involved in negotiations on all aspects of the FoFA legislation with a wide range of parties, including ISN.
“We have been in ongoing negotiations with all stake holders over many years,” he says.
“We’re now getting to the point where the legislation is being debated, and we will know the outcome. Politicians [on all sides] know our position, and our position is that we do not support opt in.”
It is unclear what a “deal” between the FPA and ISN might mean in practical terms, with the government committed to pushing FoFA through with opt in intact, and the opposition committed to rescinding the proposal, should it win office. Neither side has publicly canvassed a compromise position.
Rantall admits that the FPA remains very keen to have the term “financial planner” enshrined in legislation.
“That is something we believe will benefit financial planners in the longer term,” he says.
“We’ve always believed that a good, strong professional framework was the way to deal with the requirements of pricing or engaging with clients, not legislation.
“I would hope that those people who seek to see financial planning recognised as a respected profession [would regard] enshrining the term ‘financial planner’ is a positive thing.”
Rantall says research conducted for the FPA by Investment Trends found that more than 80 per cent of members supported the move.
“I can only be guided by what my members want,” Rantall says.
