Financial advice associations may be numerous in Australia, but they each have a role to play, the chief executive of the Association of Financial Advisers (AFA) said.
“Every organisation has its own specific part to play, its own membership,” he told Investor Daily.
Klipin said a cooperative attitude between the organisations, which aim to promote the interests of their members within the financial advice industry, helped sidestep issues of separate positions, policy and other points of difference.
“Having said that, if the industry was starting out today from day one and we had a blank piece of paper, would the industry morph and create four, five and six organisations? Logic would say, no. But we’re not in that position,” Klipin said, adding the AFA was set to celebrate its 65th anniversary this year.
The financial services industry is looking at ways to band together in the face of upcoming Future of Financial Advice reforms set out late last month by Financial Services Minister Bill Shorten.
Klipin said the industry’s position was consistent on most of the issues, such as a ban on risk insurance commissions inside superannuation and the so-called opt-in agreement, whereby clients would sign fresh agreements with their advisers every two years.
“We’re all very clear – certainly, the AFA is very clear – that banning insurance commissions in super is very poor public policy. Certainly that the only single consequence of an opt-in should be an opt-out,” Klipin said.
The FPA has also asked Canberra to reconsider the ban on risk commissions in super.
Last week, the FPA also announced the return of its “Ask an Expert” program under which members of the public can get free financial advice for six weeks.
Klipin said the FPA’s plan is “fantastic”.
“Anything that’s going to allow consumers to start to think about their futures and protect their families has got to be good. Wherever it comes from, we’ll absolutely endorse it.”
