Industry participants have responded positively to proposed financial planning industry reforms, according to the FPA.
“We have had a positive response [to the reforms] so far as they are in the best interest [of consumers] and remove compromises, which is our policy,” FPA chief executive Mark Rantall told InvestorDaily.
The proposed reforms were in response to a number of product and advice failures over the past four or five years, Rantall said.
But, he did note some regulations were at risk of becoming too strict.
“Some reforms have gone too far on some corners, which we oppose,” he said.
“For example, the opt-in and addition of annual disclosure of clients is unnecessary because they already receive this information.
“We will continue to work with the government to get the appropriate legislation.”
He said the FPA intended to workshop the issues of reform and bad industry practice as part of a panel session at the association’s annual conference next month.
The session will feature dispute specialists Financial Ombudsman Service investments, life insurance and superannuation ombudsman Alison Maynard; Superannuation Complaints Tribunal chair Jocelyn Furlan; Conduct Review Commission chair Dimity Kingsford Smith; and ASIC senior executive leader of financial literacy, consumers, advisers and retail investors and ACT regional commissioner Delia Rickard.
“Consumers are and will continue to be put first by our members and it is important, given the recent changes taking place in the industry, for all financial planners to have a full understanding of common complaints and continue to review their practice to avoid future issues,” Rantall said in a statement.
