At last week’s royal commission hearings, FPA chief executive Dante De Gori faced questioning about the association’s handling of a client complaint against former member Sam Henderson.
Counsel assisting Rowena Orr QC asked Mr De Gori whether interactions between him, his staff and Mr Henderson – who once emceed the association’s national conference – during the disciplinary proceedings were inappropriate.
Ms Orr also pressed the association chief over whether the decision to keep Mr Henderson’s matter confidential was in the public interest.
“How can members be held accountable?” Ms Orr asked.
While Mr De Gori vehemently denied that the former TV show host was shown preferential treatment, another former member has come forward to accuse the association of the same.
Speaking to ifa on condition of anonymity, a former financial adviser with experience of an FPA disciplinary proceeding says Mr Henderson’s treatment greatly differs from his own.
“Despite the crap advice [given by Mr Henderson] and the complaint against him, he was not sanctioned by the FPA, the matter was not brought to the public and ASIC [has] not been involved,” the former adviser said.
“Henderson was allowed to negotiate his punishment through a lawyer. I was interrogated with no lawyer present and was not afforded anything like this,” he added.
Mr De Gori also faced questions over the FPA’s business model, rejecting the suggestion that the association is conflicted in trying to both regulate and represent advisers.
“The FPA has a dual purpose,” Mr De Gori responded.
The FPA has been contacted for comment on this story.
I have written to the FPA to express my concern in the way it has been operating and have only received a generic response. I am dissatisfied with Dante’s responses at the Royal Commission he could not even support us by backing highly qualified financial planners as professionals. Don’t get me started with Sam Henderson case. That peacock has certainly lost his feathers and the respect of his peers
The Royal Commission highlighted just how bad things are within the banks and AMP. You’d think if planners wanted to decrease Government intervention into the sector than associations like the AFA & FPA would take a leadership role and distance themselves as far as possible from the aforementioned firms. I also wonder how seriously FASEA will listen to the FPA given what’s going on now, and I’m pretty disappointed in how they’ve handled this. I also, like many of the comments here, intend to cancel my FPA membership come June and move across to the SMSF Association to keep tax practitioner board status. Either that or I go out and do some tax courses to be TPB compliant. I’d welcome any other recommendations. cheers.
I felt like a black sheep coming to this industry from a profession (engineering) and a professional body (Institute of Engineers Australia). That was until I came across the SMSF Assoc (SPAA then). Only here did I feel that membership was made of professionals with an ethical and professional construct that I felt was appropriate. I remain a member today and is the only Assoc I have ever belonged to in this industry.
An association that exists to lobby for a specific type of financial product that is overly expensive, totally unnecessary for most consumers, and usually delivered via conflicted vertical integration!! Surely you are kidding?
Left AFA and FPA and joined SMSF Org. Great value!
Worst money I ever spent to be able to be a CFP all seems like a waste since the RC
Why? Did you not learn much more than any other course as you progressed through the 5 units?
Jape, the learning is all well and good. But it’s a real crock that the study is not properly recognised under FASEA. Particularly as it was only 12-18 months ago that major employers used CFP as a benchmark requirement for any candidates.
Professional Associations play an important role in setting the tone, influencing and overseeing culture, and ensuring the right governance framework and controls are in place. Unfortunately we don’t have any professional associations in Australia.
Whilst we as individuals can act professional and contribute to the culture of our own firms, what these professional associations, do and most importantly expects, is absolutely critical in setting the tone for the entire financial planning profession. Getting payments from firms like AMP & CBA Fin Planning and having these firms shape the future of financial advice is now below community expectations. It’s time for change FPA. It’s time for real leadership. Sadly change is beyond the FPA. Many members I talk to feel the only way to change things is to actually leave the FPA and resign. After all to remain makes you complicit in their behavior and their culture.
FASEA should set up a centralized and independent body for financial planners in stead of relying on the useless associations such as FPA etc.
FPA Game Over
All FPA members should resign for at least one year as a threat to its existence UNLESS it lifts its standards and acts transparently. Being a member of an organisation that has its members routinely disciplined by ASIC/courts? FOS etc is NOT doing you any good. In fact NOT being a member of FPA could carry more weight… I have not been a member since helping to set it up when on the National board of the AIPA with Barry Lambert, John Godfrey, Tony Gillette and others back in the late 1980s and it decided to seek sponsorship from product manufacturers for its conferences – which I believed was both unnecessary and unethical (thin edge of a very fat wedge) and my clients are happy that I’m not a member because they like MY standards better than those of the FPA! It’s time for FPA members to take control of their association or leave it.
A large portion of the FPA’s income comes from the CFP program. Another chunk the unprofessional partner program. Another then comes from the FPA annual conference. When that is the ratio I think you’ll find the FPA motives have sadly changed.
An interesting idea Philip but many members are trapped inside the FPA due to TPB registration issues and/or recognition of their CFP education. Until FASEA is resolved, and FPA members know exactly what additional studies they are up for, it would be foolish for those members to resign just yet.
Rather than resigning, FPA member interests would be better served by agitating within, for reforms such as scrapping the Professional Partners program, banning product company sponsorships, and rescinding the CFP designation from the “grandfathers” who never completed the education component. That way the FPA could become the true professional association that you originally aspired to, and the community now expects. You might even rejoin!
Unfortunately many members are not happy with the Professional Association. It’s Chairman has stated he can’t see the difference between CBA and CBA financial Planning. The head of it’s policy area Ben Marshan has stated if you don’t like the Professional Partner program then just leave. To get TPB status costs $500 from Kaplan and say a weekends work. Membership of the FPA is $1,000 and $500 for associate status. To remain a member of the FPA is now reached the point where it’s members are complicit with the behaviour of the firms in the FPA.
If senior management of the FPA say if you don’t like it then leave then take their advice and leave.
What can I do as an adviser to lift standards in the Industry? To remain silent or to continue being a member of the FPA is to say you’re happy keeping the financial planning industry un-professional and in the dark ages. Perhaps sadly it’s time to leave and quit. Membership renewal is merely a month away…perhaps it’s goodbye FPA.
To quote another: “”Financial Planning Association (FPA) chief executive Dante de Gori is destroying the reputation of good and independent financial advisors (who should be calling for his dismissal). If they are not calling for his dismissal, then they must be complicit in FPA’s inability to understand and supervise professional standards. [i]No hope for the profession if his or her professional body is corrupt[/i][b][/b][u][/u]”
When will members of the FPA like AMP Financial Planning and CBA FP be held to account Mr FPA? When will the FPA end the professional partner program and the link between advice and product FPA?
So it takes over 12 months for the FPA to decided that cashing out a SASS fund at 56 as opposed to waiting till 58 and therefore costing $500K and then rollover the funds into a Henderson established SMSF and then invest in the Henderson Managed fund was poor advice. The guy admitted he didn’t even know about what involved in meeting safe harbour provision and the need to consider alternative subjects. The FPA has clearly lost it’s way.
Agree. The ‘advice’ was criminal and shameful.
The FPA is not conducting itself as a true Professional Standards body. Why does it accept sponsorship money from product manufacturers? Why doesn’t the FPA publish the names of all members sanctioned by the Disciplinary council? AFSLs need to know who is on the ‘naughty list’ for background checks. Why has the CEO not apologised to Members for the FPA ‘issues’ identified at the RC? Is it time for a culture review and clean-out at the FPA? It would appear the CFP designation is now redundant given it doesn’t meet the FASEA educational standards. With its credibility now at a low point what will the FPA do to restore Member, Regulator and Government confidence? Reducing member fees will be a good start.
Reducing the FPA’s CEO Salary AND the $1Mill in resourcing fees for his ‘office” would be a good start.
Surprised there hasn’t been more member outrage over this.
Echoes of a Naked CEO come to mind….
Why are we surprised when this industry condones self promotion. The award winners are chosen from the limited group that spend the time to submit an application on why they should win ? Industry funds are allowed to spruke past performance and manipulate time periods and their asset allocation to improve their returns against their peers. The regulators are charmed by their rhetoric rather than having a discerning eye.
Are industry funds actually going to appear at the Royal Commission, or is their appearance dependent on what submissions the RC receives on industry super? Too few people know or understand what the industry funds are getting up to.
Just like the banks have done. And the FPA rolled over
not only did the FPA give Sam Henderson preferential treatment. Sam Henderson despite the complaint against him was bullying the FPA
QC ORR: How many times did you Mr Magoo/De Gori appear on Sam Henderson’s TV show? …Mr De Gori AKA Mr Magoo -“12 times… I think…”” Yes we can see the relationship & enough said.
For the record
QC Orr “You said you first met him when you were both panel members on a television show?
De Gori “Yes. Sorry. 10 years ago before 2010, before I worked at the FPA, was the first time I met him. Since then I have appeared on his show perhaps maybe half a dozen times…”
Source:
https://financialservices.royalcommission.gov.au/public-hearings/Documents/transcripts-2018/transcript-26-april-2018.pdf
Agree the perceived conflict of interest remains….