Speaking to ifa, Mr Rantall said the “evolution” of the association’s vision harks back to 2011.
“We went through the process of a constitutional vote to evolve the organisation into a professional association for individual practitioner members,” said Mr Rantall.
“Having gone through that, we established the vision at the time, which was to evolve financial planning into a universally respected profession.”
That end has now been achieved, said Mr Rantall – with a professional framework in place as well as the Certified Financial Planner designation.
With that previous vision fulfilled and “various reform agendas” now underway, the FPA saw fit to update its vision, he said.
“So we evolved our vision – through our members – to standing with Australians for a better financial future,” said Mr Rantall.
“We have a public interest duty and a fiduciary duty to consumers to ensure that their interests are put ahead of anyone else’s.
“So everything is lined up with our members sitting on the client’s side of the desk.”
Putting the interests of the consumer first as well as representing FPA members are “by no means mutually exclusive”, he added.
“We live in the age of the consumer and what we would say is that it’s in everybody’s best long-term commercial interest to put the consumer first,” Mr Rantall said.
Ummmm – about think you’ve missed the point here guys…
This is not insto’s ownership, nor independence (never has really) – but ALWAYS been about putting the client FIRST in all your dealings with them.
The issue we have as an industry is perception: ie in order to reach targets, we have to make money. Well what about all the nice warm and fuzzy things that help clients meet THEIR goals and objectives???
Paying of their mortgage, savings for the kids education, buying a car, paying off a car, going on holidays, buying a new mashing machine – and on, and on, and on…
How often have you scoped out clients lifestyle goals and objectives, simply it didn’t fit ‘advice’ as per your targets?
Really guys – no 1 on the FPA’s code of ethics: client first. Never ever forget that!!!
Patrick, you make a valid point -consumers don’t feel as if planners act with integrity.We have more work to do to improve the perception of those who give financial advice.Note that stakeholder survey you refer to did not differentiate between financial planners, mortgage brokers, accountants or stock brokers and “integrity” had a wide meaning to the stakeholders surveyed. The survey also didn’t establish whether those consumers who received advice (rather than perceived what advisers do) obtained it from someone who was a member of an association or professional body. Because membership of a professional body is not compulsory this leads back to the other points ASIC made in the stakeholder survey – wanting to have more flexible enforcement tools and extending their investigative powers to help consumers. I believe these things are important however advice givers need to be able to self-regulate. Is there a better way to self-regulate than through a professional body?
Congratulations to Mark Rantall. Direct involvement with consumers in Business Process Improvement is long overdue e.g. National Seniors.
Good luck with your reform agenda, Mark.
Well done.
John Cosstick
So Mr Rantall claims the vision “to evolve financial planning into a universally respected profession …. has now been achieved” but ASIC claims that only 23% of consumers surveyed thought that planners acted with integrity. Go figure?
Great, so there will be NO objection to voting in favour of all advisers being classified as INSTITUTIONALLY OR INDEPENDENTLY OWNED at tomorrows INDUSTRY WORKING GROUP.