Following a tip by an anonymous source, the ifa has learnt that the Financial Planning Association (FPA) wrongfully charged its members higher fees when upgrading their level of membership.
“The FPA has found a small number of members were incorrectly charged a higher fee when upgrading their level of membership,” Marisa Broome, the chair of the FPA told the ifa in a written statement.
“It was due to an administrative error and the FPA will be proactively contacting the impacted individuals to arrange reimbursement.”
According to the ifa’s source, the FPA’s remediation covers the last two years. However, the source has suggested that the “administrative error” could have seen members overcharged as far back as 2011.
Ms Broome did not disclose when the alleged error first came to the FPA’s attention, nor the period of time the “error” is believed to have been in place.
The FPA is now focused on contacting impacted members.
Hmmm, interesting, I wonder if they are going to “self report” to ASIC and their own Conduct Review Commission? I’d be happy to sit on the Judging Panel and determine if they have misled Members, failed to disclose the correct fees, acted in the best interest of their members, checked their “fees for no service” obligations and have they met their Ethical obligations to the Financial Planning INDUSTRY???
What should the fine be?
Why hasn’t the CEO come out and disclosed who made the mistake and provide an answer as to who was held accountable? In fact, the CEO is very silent on this matter??
So basically they are saying, we issue a statement, apologise and say we will fix…..Hmm, if this was an Adviser, we would be before ASIC and dismissed as a Member of FPA!!! Just saying…….
Couldn’t agree more, great opportunity for the FPA to put themselves in the shoes of advisers and truly understand what the advisers are going through
The FPA are the kings of fees for no service. It is very difficult to see when the FPA might have actually provided some benefit to planners over the last few years. I guess they have been too busy looking after the big donors such as the banks and AMP to worry about the measly $600-$1200 per year from the lowly planners.
I have paid a CFP fee and marketing levy for many years now but I have never received a client referral and I have never met anyone who even knew what CFP meant.
No doubt Dante will pop up in some cushy government advisory role in the next few years.
I left the FPA but they stated I had to give 6 months notice, so kept charging me for a further 6 months.
Is this not [b]”fee for no service”[/b] in our industry
How do they get away with this
OMG someone made a mistake! Seriously, is this where our profession has landed. Let them fix the mistake and move on instead of making out its a federal case.
Agree, but you have missed the point that it depends who makes the mistake what the penalty will be. ASIC, FPA, APRA, the big 4, AMP, IOOF, Dixon, etc = pay a fine and issue a press release and don’t do this again
If advisers do the same thing, they will be banned from being able to get an income for years.
Could we arrange for another Royal Commission into ASIC, FASEA and the FPA? Now that’s what I would call compelling viewing!
They’ve also wrongly charged for their CEOs salary… $502k was meant to be $50.20k
Fee for no service again….
The FPA you say? Overcharged advisers? Why am I not surprised at this story…
They charge a fee for having a CFP that no one has ever heard off. They also charge a marketing fee to CFP’s who never recieve a referral.