The FPA board has endorsed the FPA’s remuneration policy to move away from commission-based fees for financial planning advice by 1 July 2012.
FPA chief executive Jo-Anne Bloch said the association was now looking forward to putting the policy in place.
“This is an historic decision by the FPA and shows how our members lead the way in the financial services sector,” she said.
“Members on both sides of the debate have made substantive contributions that have enabled the FPA to finalise the policy and ensure efficient implementation of these principles.”
The FPA has also established a transition committee to assist members with guidelines, tools and information to ensure a smooth shift to client directed fee payments for every practice, Bloch said.
“The FPA wants to encourage members to adopt these remuneration practices as soon as their business is ready.”
Bloch also outlined that risk products, rebates and related payments would not be within the scope of the remuneration policy at this point in time.
As a result, the FPA has set up a member working group to progress appropriate remuneration principles for risk products, as well as a working group to determine how corporate superannuation will be implemented.
Both taskforces are expected to report to the FPA by early 2010.
The FPA received more than 250 responses to its financial planner remuneration consultation paper released in May this year, which assisted the board in developing the revised policy.
