FPA chief executive Mark Rantall said a joint committee would not only serve the interests of impacted clients but work to restore client trust in CBA’s advice business.
“In the past few weeks we have seen unprecedented events unfold before our eyes,” Mr Rantall said.
“The FPA stands with those clients and is calling for a clear plan of action from the CBA to fully compensate all clients and ensure we don’t see a repeat of these appalling events in the future.
“We will agree to form a joint committee with CBA to commence the process of identifying all clients and establishing fair and reasonable compensation.”
The FPA said the joint committee would be chaired by an independent and highly respected individual, and that it would volunteer senior members of its leadership team to work within the group.
In addition, the FPA said the joint committee would review CBA’s existing professional standards, urge CBA to support membership of an approved professional body by reimbursing costs for planners and fully support the FPA’s 10-point plan.
Mr Rantall said the FPA is also calling for a summit with a “clear and independent charter around the changes needed to restore community trust in financial planning”.
“We would like to see the summit chaired by an eminent, independent figure,” Mr Rantall said.
“We think it’s about time the entire industry regulated itself in co-operation with government, regulators and community stakeholders.
“If we can’t have a summit which commands the respect of the public, one with genuine teeth that can truly deliver positive changes, we would fully support calls for a Royal Commission.”
The FPA’s call for compensation follows recent commentary by law firm Maurice Blackburn to ifa over whether a Royal Commission could produce timely results for affected Commonwealth FP clients.
“I think it needs to be fixed and it also needs to be done quickly and I think the Royal Commission is just too far off,” Maurice Blackburn partner John Berrill said.
I’m with you jm. Exactly what has been going on here right under our noses?
In my experience very very few planners do the wrong thing. Problem is failed products that also mislead planners and cause huge problems. People are screaming at Banks for investors loosing in toxic, high risk products! Why are they on Approved Product Lists anyway?Where are the product providers? Why are they not held to account.
All the endeavours of ASIC, FPA, CBA etc is like going after the SS guard but ignoring Himmler. And the Heinrichs get to keep making their fat salaries and bonuses.
Way to go, FPA: focus on the advisers again = more revenue for its “training”, “education”, “compliance steps” blah blah blah. Useless, as usual.
Nothing will change until the crooks’ bosses are jailed.
@old Risky,
The FPA has not had a membership category for corporates/institutional members for a number of years. As an organization they would not have had any more information than the general public on the extent of the problem in the CBA so all of your assumptions are clearly wide of the mark.
As a member of what I believe is the peak professional body for financial planners, I am proud of the stand that the board and the organization as a whole has taken in this matter.It is a leadership position that other adviser associations etc have not bothered to take any stance on whatsoever, The public interest must be protected firstly in order for our profession to be universally respected and valued.
A casual ABC viewer would say the FPA is too late
Why didn’t FPA take a stronger position on CBA 1-2 years ago. One assumes CBA FP and FinWiz etc are corporate members of FPA
Surely FPAs ordinary adviser members should know why FPA took a softly softly approach for so long with one of its largest member firms
Given that the issue may be extremely time consuming- does the FPA have the resources and will fees for membership increase as a result. No issue with an independent body being involved but in the end- who pays for the involvement?
Will somebody please explain, in plain English, just what exactly these “appalling” & “unprecedented” advice failures are?
Hi, With all due respect to the FPA I think the Comm Bank should fix it’s own problems and not have an industry association get involved to sort it out. Mr Narev needs to come out of the bunker and seem to be involved by the clients, public and the associated in house advisers and aligned. Media street is not going to let this dog go for a long time.