There are at least 8 member associations in Australia representing a business model, the global CFP designation and specialist advice like personal insurance cover.
|Michael Nowak||Association of Financial Advisers||National President|
|Peter Johnston||Association of Independently Owned Financial Professionals||Executive Director|
|Angela Martyn||Boutique Financial Planners Principals Group||President|
|Marisa Broome||Financial Planning Association of Australia||Chair|
|Daniel Brammall||Independent Financial Advisers Association||President|
|Judith Fox||Stockbrokers and Financial Advisers Association||Chief Executive|
|Neil MacDonald||The Advisers Association||Chief Executive|
|Alex Vagliviello||United Financial Advisers Association||Managing Director|
These associations have different reasons to represent their members but there must be one message to Canberra on the financial planning profession, and the cost to serve and provide advice to the Australian public.
The Federal Government has made the cost of advice ($3,000 or more) beyond the reach of the average Australian individual or family. After the introduction of FOFA (2012) and FASEA (2019) registered advisers from ASIC’s FAR must take at least 60 steps to provide advice or risk breaking the law.
The added costs come from monitoring, reporting to or be registered with:
- ASIC – Financial Advisers Register for licensing conditions
- TPB – Tax Practitioners Board for tax advice
- Austrac – Anti Money Laundering/Counter Terrorism Financing for client identification
- AFCA – Complaints handling and disputes including Compensation of Last Resort
- FASEA – Continuous Professional Development monitoring professional development and education standards
- CMB – Code Monitoring Body for disciplinary action and deregistering advisers
- AIC – Privacy of individuals and their data
- ACCC – Consumer Data Right/FOI regime to be introduced
In Australia the average full-time male wage is $87,209 pa and $74,563 for females. Approximately 50% of clients are individuals. Can an individual afford the $3,000 cost of advice or 4% of the average (female) salary?
We can see that the cost of advice will lead to most of the Australian population never receiving advice in their lifetime causing financial stress in some people and mental health issues to continue.
It’s imperative that all associations work together to provide one message to Canberra and reach agreement on what laws are required to give advice in the best interests of the Australian public and in the best interests of the profession.
If elected to the FPA Board in 2020, I will reach out to all associations to start work on the message to Canberra.