The fee disclosure requirements of the Future of Financial Advice reforms are hindering the movement of clients to a fee-for-service model, says an industry M&A consultant.
In a statement issued yesterday, Radar Results principal John Birt, a business broker specialising in financial planning practices, said in practice the FOFA reforms – and FDS requirements in particular – are running counter to their original intention.
“FOFA was introduced to give more Australians better advice at a lower cost,” he said.
“Some aspects of FOFA are doing the opposite; stopping planners from moving some clients from a commission system to a fee arrangement, basically to save the planner from more 'paperwork' and responsibility.”
The statement also announced that Radar Results will be a sponsor of the 2013 Financial Planning Association conference in October.
SUBSCRIBE TO THE IFA DAILY BULLETIN
- 20 Jul 2018CPA shuts financial advice divisionBy Reporter
- 20 Jul 2018Don't neglect AI, advisers warnedBy Tim Stewart
- 19 Jul 2018AMP unveils new in-house training programBy Reporter
- 19 Jul 2018Self-licensed adviser cops 4-year ASIC banBy Reporter
- 19 Jul 2018Hub24 to launch new core offeringBy Reporter
- 19 Jul 2018SMSF sector warns about advice ‘exodus’By Miranda Brownlee
- view all