The Financial Services and Superannuation Minister put a few financial planning sector noses out of joint by announcing industry representatives for the Stronger Super Peak Consultative Group minus anyone from the advice sector.
Many claim the omission of an advice representative is not entirely surprising as the panel centres on superannuation, though others have been left dumbfounded that the government could be that dim to the fact that financial planners do in fact provide advice on superannuation issues.
For others, the frustration over the new panel goes a little deeper.
In two months, it will be 12 months since the Labor government announced its Future of Financial Advice (FOFA) reforms. In that time little other than industry debate has been had.
There has been no resolution on issues regarding opt-in or fiduciary duty nor has there been any finalisation on concerns over commission or volume rebate payments.
The industry has been awash with spokespeople keen to get their views heard, though again, amid all the voices there are only questions and not answers.
It is understandable that the government forms committees and gains industry consultation, though surely they should be coming close to ‘solving’ the issues of Australia’s advice sector.
I had an interesting chat with an industry participant last week who offered some frank views.
The person in question was less than amused by the lack of outcomes the government has given the financial services industry.
In his view, FOFA was never designed to offer assistance to the privately-owned or self-employed planners, but to merely strengthen the ties for the institutions. In his words, the government is “engineering” an outcome that will simply suit them.
There will be no resolution for advisers, he said.
He said what the government was attempting to create was an industry where complaints against advisers would no longer exist because no-one would be able to afford financial advice.
What are your thoughts?
Are you concerned that no resolution has been reached over the proposed FOFA reforms?
