Industry Super Network (ISN) chief executive David Whitely said he is not as worried as other parts of the industry by potential regulatory-driven consolidation, while voicing his support for a united front between his organisation and planning bodies.
There has been broad concern that Future of Financial Advice changes will lead to a concentration of ownership in financial planning services providers, and that planning will mostly be provided by institutions and industry super funds, Mr Whitely said at the ISN’s Financial Advice in Super Symposium in Melbourne this week.
“I’m less convinced this is a problem,” he said. There will be more confidence from consumers that good advice, in a client’s best interests, will occur with more substantial brands, he added.
Mr Whitely also said that developments between industry super funds and financial planners, particularly between the ISN and the Financial Planning Association (FPA), has been based partly on the realisation that the market is changing and expectations of consumers are changing.
But the conversation was also based on a realisation that financial planners and industry super funds have the same objective, which is a genuine transformation to a profession, he said.
“What we found with the FPA was that when we took a step back from fighting each other and spoke to each other for a few minutes, when we listened to each other, we were actually saying the same thing,” he said.
The associations had different ways they were trying to achieve it but a common set of principles they were striving for, he added.
Earlier in the day, FPA chief executive Mark Rantall addressed delegates on that hunt for professionalism.
He said although the industry couldn’t consider itself to be there yet, it was on the path. Although, he was becoming “increasingly impatient with the time it takes to get us to where we need to be”.
“If in 10 years’ time we’re sitting here and the vast majority of serious financial planners are not certified, then we’ve lost,” he said.
“By certified, I mean in our case, certified financial planners. There could be another certification [by then] but there’s none that’s relevant out there today.”
Important steps on the journey to professionalism included the removal of commissions, signing up to professional codes of conduct, high entry standards and an improved public perception, he said.
