In an email communication dated 3 July, obtained by InvestorDaily, the NTAA – which according to its website represents more than 8,500 tax agents and accounting firms – spoke of conflicting sectors within financial services.
“The war between the financial planning empire and accountants in practice is now out in the open,” the communication, which was signed by “NTAA co-founder Tony Jones”, stated.
“The press is calling it a turf war but it’s really more than that. It’s a war between the huge financial interests of large financial institutions.”
AMP is particularly singled out, with the NTAA communication describing the company’s move into self-managed superannuation services as a “full on offensive, a blitzkrieg, launched against accounting practices to entice clients away from their most trusted adviser and into the arms of a huge financial empire”.
The revelation follows comments made by the NTAA last week which have arguably added credence to suggestions of a financial services turf war.
On Monday 22 July, the association issued a statement to the media which warned consumers against seeking advice from a financial planner and claimed the financial planning industry is “bereft of integrity”, pointing to the Storm Financial saga.
The comments prompted the Financial Planning Association (FPA) to call for an apology, with FPA chief executive Mark Rantall telling InvestorDaily the NTAA statement was “grossly offensive” and defamatory.
“This shameful approach for seeking publicity in the pursuit of commercial interests has no place in the professional community, and demeans all professions,” Mr Rantall said.
On Thursday, shadow minister for financial services and superannuation Mathias Cormann entered the fray, defending the financial planning sector and describing the NTAA comments and “reckless and irresponsible”.
“Such a blanket attack on the professionalism of an entire industry which has worked very hard to keep improving, particularly in recent years, is reckless and irresponsible,” Senator Cormann said.
“Financial planners and advisers provide a very important service helping people to improve their financial health and well-being by managing financial risks and maximising opportunities.
“Overwhelmingly the industry operates at a very high standard with planners and advisers totally focused on and committed to the best interest of their clients.”
At the time, the NTAA’s leadership was unavailable for an interview responding to the Senator’s comments due to a scheduled “board meeting” that went for more than five hours.
However, at 5pm on Friday last week the association put out a second press release which stood by the sentiments in the original release, stating it was simply reflecting the “views of [its] members”.
“While the NTAA understands that its comments have angered some in the financial planning community, the media release was intended only to warn retirees about protecting their retirement savings, as the actions of an unethical adviser on an unsuspecting consumer is potentially catastrophic,” it said.
“Whilst we acknowledge there are ethical and responsible financial advisers it must also be acknowledged that a consumer may find it difficult to determine a financial adviser’s competence and integrity.”
