In a statement released on Thursday, FPA chief executive Dante De Gori said statements by consumer groups Super Consumers Australia, Council on the Ageing Australia and Choice last week that consumers should contact a financial counsellor, not a planner, if they were in financial distress, were “doing a disservice to the community”.
“Australia is in the midst of an unprecedented health crisis and slanderous remarks are completely unnecessary and unhelpful,” Mr De Gori said.
The comments come following a statement from the three groups last week urging consumers to only use the government’s early super access scheme as a last resort, with Choice policy and campaigns adviser Patrick Veyret urging to consumers to discuss their plans with a financial counsellor as these services were “free and independent”.
Mr Veyret also warned consumers that “it will only be in very rare circumstances that a financial adviser recommending early access of super is doing so in your best interests”.
Mr De Gori said this was an inaccurate statement as financial planners were bound by a best interests duty and the option to access super early was dependent on a client’s personal circumstances.
“The FPA completely rejects this assertion and requests Mr Veyret’s statement be retracted as he is in no position to decide what is in the best interest of a customer, nor can he make claims about client circumstances,” Mr De Gori said.
“Financial planners must adhere to a best interest duty at all times. This is an important piece of legislation that separates financial planners from other financial services professionals and ensures they are always aligned to client outcomes.”
Mr De Gori said consumers should consider contacting either a financial counsellor or financial adviser depending on “whoever they have a trusted relationship with”, and that it was important all financial services providers shared the duty of assisting consumers during the current crisis.
“Financial planners play a critical role in the lives of their clients and have been overwhelmed with inquiries in recent weeks as the COVID-19 pandemic wreaks financial havoc on the lives of Australians,” he said.
“For too long financial advice has been misrepresented as a service for the wealthy. That is not the case, and the FPA will continue to work tirelessly to ensure more Australians are able to access advice. Particularly in times of financial hardship.”
Choice should support Choice of adviser/ counselor/ self advised channels. Problem is that like many it “recommends” it is just another not for profit organization ,making plenty of profit and paying it out in big salaries hiding behind consumerism like the industry super funds have been .
Is this the FPA best shot at consumer advocacy ?
CHOICE lost all credibility years ago when they started clipping the ticket on personal risk.
So Dante, how much will it cost in the FARSEA, FOFA, Best Interest world to see a new client and advise them on the $10k x 2 Super early withdrawal.
Interested to hear ?
As the FPA are a big part of letting the ever increasing regulatory burden of Advice rise to a point it is not feasible or price valuable to provide such advice to a new client.
Dante what’s the price ?
My best guess – $4,400 GST incl.
Is Mr Veyret a qualified financial planner? is he providing advice here?
I am not sure that Dante or indeed many here know what financial counsellors actually do. They help people that are up ship creek from both an emotional perspective and financial perspective. They try and help map out a way forward. These people wouldn’t be able to afford to see a financial adviser, so yes they should go and see a financial counsellor.
The past few weeks I have been helping not only clients but friends and people referred to me. I am giving my knowledge, experience and support for free. I am a financial adviser and a certified money coach (which deals with the emotional side of money) And most advisers do deal with the emotional issues that come with money. The issue with the Choice article was that it made us financial advisers out to be money hungry – which is very far from the truth. My business is not profitable at all these days – unless I increase my fees again due to the increasing operating costs of a financial planning business. I can assure you we are not all in this for the money we do this to help people. Now is the time we as an industry have the opportunity to show the value we can offer to Australians. And as for the stimulus package offering those in need to get their super out early… this is certainly where advice comes in to play.
Is ASIC and others doing anything, is any issuing a legal challenge to this self appointed unlicensed slander. About time the likes of this idiot are made to publicly apologise or face legal action. If there is a board with choice they should flick this idiot on to the Centrelink line
Too faced….Dante my phone went dead during the CBA advice scandal and I remember how silent you were in return for more members and cash.. . Quite acceptable for the CBA to deflect criticism of their behavior onto financial planners during the CBA advice scandal… CBA tarnished all planners bu doing this and we got called uneducated resulting in FASEA…yet call out a body now. Funny what payments via the professional partner program will buy you.
Perfectly happy for people to contact a financial counsellor. How on earth is a financial planner meant to be remunerated for all the hoops they must jump through if the ‘client’ is in desperate need of $10k from their super?
If you look through the CHOICE website and finance articles, you’ll see this isn’t an isolated case.
Consumer group “Choice”, act for themselves. Why are they so anti financial planning and mortgage broking given these industries help clients? Choice are against commissions but themselves took commissions from lenders from their “Big Switch” refinance campaign a decade or so back. The hypocrisy is staggering. They should go back to reviewing washing machines. https://www.smh.com.au/money/commission-backflip-delivers-a-choice-cut-20110805-1ifsq.html
This article needs to be updated with this data. Choice need to be called out once and for all.
So, can someone explain when CHOICE Magazine became the experts in Financial Advice? The last time I checked, I could not see their AFSL details! Choice Magazine should get licensed or simply stick to reviewing TVs, Fridges and consumer goods. They have no understanding the financial services industry other than a very basic understanding of high fees vs low fees
Did you notice just how confused Patrick Veyret’s statement was? A person giving general advice who clearly doesn’t know what he is talking about. Are Choice’s standards dropping? Their PR is normally above this level.
Maybe De Gori should voice this out in the forums that Choice use to get some impact on his message instead of sounding his message out to “no-one land” where the only ones that here his message are him and financial advisers. Try getting out messages to news service agencies like Ch 9,7,10 news or even get onto the breakfast shows and having a segment alocated to get the message across! it really doesnt take take thought behind this but as Nike say, “Just do i!”
Don’t choice review washing machines and clothes dryers? Seems to me they purport to be something they are not which is an organisation with opinions anyone gives a fig about…stick to white goods Mr Veyret, All advisers are already under the bus so stooping to slinging mud once again at us is pointless and false/inaccurate
In my experience one of the first questions a financial councillor asks, is do you have a financial planner? Then they ask them to contact the financial planner. IF the client wants to do nothing but withdraw $10,000 and has no previous relationship, I would say it would be very difficult for a fully fledged adviser to charge reasonable fees and put their obligations under FASEA in jeopardy. A client with an adviser already, should use common sense and go to who they already have a relationship with and most likely already pay fees towards.
Great work Mr Veyret…so you think financial counsellors can give meaningful/appropriate advice without knowing the consumers complete financial circumstances and aspirations????? Is it a requirement that counsellors do a full financial fact find to ensure they are fully aware of the consequences, both short and long-term, of any ”advice” they provide?? Surely, consumers seeking guidance from their existing financial adviser, who IS fully aware of their financial situation (including long-term goals and objectives) is the best option. Yet another ”kick in the head” for those of us in this industry who put clients need/interests first.