Speaking to ifa yesterday, Mr Kendall explained that his firm’s decision to become independent – and public comments in support of the move – will not preclude him from adopting the FPA’s stated position of “business model agnosticism”.
“The FPA is not about telling people how they should structure their business or who they should be licensed by,” Mr Kendall said.
“I have worked in all the models – a bank environment, a large licensee environment [and an independent environment] and in all of those models it is about a professional’s commitment to providing good advice to a client.
“It is about individual behaviour, not about distractions about licensing. Business models don’t matter; licensees don’t matter.”
Mr Kendall’s comments are in line with the FPA’s longstanding position on the vertical integration debate, but conflict somewhat with previous comments he has made indicating Corporations Act-compliant independence is a “better” option than being “independently-minded”.
The incoming chair’s adherence to FPA dogma may disappoint some in the IFA community, such as Bluepoint Consulting’s Tony Bates, who told ifa he has re-joined the FPA after a long hiatus on the assumption that the new board would be more supportive of structural independence.
The Independent Financial Advisers Association of Australia (IFAAA) also issued a statement yesterday describing Mr Kendall as a “strident leader on the importance of genuine independence” and welcoming his election.
However, fellow FPA member Tim Mackay of Quantum Financial – another outspoken critic of conflicted business models – has backed Mr Kendall’s promise to represent advisers across all licensing channels.
“Neil is an impressive and successful independent financial planner [but] he comes from an institutional background and well understands the issues all financial planners face,” Mr Mackay said.
“Neil’s a good listener and his approach is consultative and inclusive of all members within the FPA, regardless who they are aligned to.”
Grump old man, not everyone gets to make that choice. would be very interesting to see what happened to membership numbers if the cfp scam was ever undone. doubt that will be high on kendall’s agenda either mate.
Just another reason NOT to join the FPA !
Can we please stop pretending the FPA is only about consumers. FPA chair is a powerful role with influence over the course of the profession. it is not unreasonable for us to expect that when a passionate IFA gets appointed to such a position they will fight against the insto dealer groups and their incentives, exit fees and restrictions that hamper competition in our industry. those hopes were dashed pretty damn quick.
really who cares if you are independent or not as long as you disclose it to the client and its highlight on all your documents, marketing material , not in small letters hidden in the back of document
I would expect him to treat all members the same
Oh dear – pulled into line quick smart by the people who really FUND the FPA. Cant have that sort of talk now, might threaten their position of power.