The FPA has taken a stand against fellow advice body the Association of Financial Advisers (AFA), claiming the group’s opposition to its consultation paper on adviser fee policy is merely a membership building exercise.
“I think the position that the AFA has taken on remuneration reflects life insurance and risk products and I feel that we would come to an amicable solution if they were prepared to negotiate,” FPA chief executive Jo-Anne Bloch said.
“But we see them doing this for membership purposes and so we believe we’ve come up with an amicable solution that would work for their members without compromising any of the issues or standards that we’re setting.
“I just feel that what they are doing is not necessarily around the profession and professionalism but it’s around membership. There is more that we have in common than not and I think we could combine as a very effective force, but unfortunately the AFA doesn’t see it that way.”
Since the FPA released its consultation paper earlier this year, the AFA has been vocal in its opposition. The FPA’s paper recommends that from 2012, fee-based remuneration becomes the standard model for financial planning advice.
“I think the issue of choice and having robust choice is a good thing. I think any time there is a monopoly environment, monopolies are generally bad for consumers and having a robust marketplace for associations, whether you’re talking about the FPA … or the AFA, it gives people choice,” AFA chief Richard Klipin said.
“There are a lot of common members of all associations and I think people vote with their feet and they go where there is value.”
Klipin would not comment on whether the AFA and FPA would ever merge.
