POLL RESULT: Would you prefer to sign up to a Professional Code through your licensee or through an industry association?

Independence, innovation and education are crucial if the financial planning industry is to aspire to a trusted professional status like accounting. Independents are necessary for innovation and exposing the cracks in institutional products and practices.

I think in the short term there will be a strong move towards large banking institutions and independent advisers will reduce because independent advisers are under attack. I think long term that the pendulum will swing back and you only have to look at the growth in SMSFs and limited recourse loans to see that the public demand and deserve independent, quality advice. As long as the remuneration structure is clear, I don’t think it is a big issue for the public. Every recommendation from an institutional of bank employee is technically conflicted (not independent) and yet the public don’t seem to care.
I see great danger in relying on industry bodies who set up terms of reference which defy the laws of natural justice and if signing up to a code of ethics with your own license is the alternative then that would be the best option.
Power corrupts and absolute power corrupts absolutely and financial planning industry bodies should not be given any more power. I don’t think too many planners have read the Terms of Reference of their association membership. I was quite shocked to read that if a member I would give the power to a leading planning association to walk into my premises and grab any file (regardless of relevance), my file server and could disrupt my business and there are no appeal rights.
I can’t think of a single profession that would tolerate such abuse of power yet it is the curse of financial services until planners demand something better. Why would you add the power to regulate until the underlying terms of reference adopt the democratic Westminster system with full Rights of Appeal. If there was an association, totally owned and controlled by planners, there might be some merit.