The BFP – members of which are all also members of the FPA – welcomed the initiative, particularly the proposal to separate advice from financial product sales.
“The BFP sees the 10-point plan as not only containing steps to moving forward as a profession but more importantly it will provide greater protection for the Australian consumer,” said BFP president Wayne Roggero.
“The BFP has always believed that the FSR regime contained a structural flaw in allowing financial product manufacturers (banks, insurers and super funds) to ‘dress up’ the provision of information regarding their products, and the selling of their products by employees, agents, or representatives of their licensees, as ‘advice’.”
“These financial institutions have continually used this ‘advice’ as a ‘loss leader’ to direct funds to, or retain funds in, their own financial products or platforms.”
The BFP also took the opportunity to reiterate that FOFA “failed to address the structural flaws in the financial services industry”.
