Westpac's policy of mandatory FPA membership for aligned advisers has come under questioning from the royal commission.
Referencing misconduct by an individual Westpac adviser, counsel assisting the commission Rowena Orr asked the bank’s representative, general manager of BT Financial Advice Michael Wright, about Westpac-aligned advisers’ mandatory membership of the FPA.
Specifically, Ms Orr asked whether the advisers’ membership presented another avenue through which to address instances of poor conduct.
Mr Wright clarified that this was not the case, and that the bank does not report specific advisers’ misconduct to the association.
"Why would you require your advisers to be a member?” Ms Orr then pressed.
Mr Wright said the FPA membership policy was intended to help professionalise the advice industry.
The adviser in question, Krish Mahadevan, also holds the FPA-run CFP designation.
When asked by ifa whether the FPA will investigate Mr Mahadevan’s conduct, or whether any action will be taken against him, the association said it would “not comment on an individual or matters currently under review by the royal commission”.
ifa’s rolling coverage of the commission’s public hearings on financial advice can be followed here: https://www.ifa.com.au/strategy/25404-royal-commission-financial-advice-hearings-live-blog
SUBSCRIBE TO THE IFA DAILY BULLETIN
- 22 Jan 2019Advice issues stem from writing of SOAs, says RafteryBy Adrian Flores
- 21 Jan 2019Federal Court winds up CFS Private WealthBy Eliot Hastie
- 22 Jan 20192.44m Aussies suffer from financial stressBy Sarah Simpkins
- 22 Jan 2019BT releases 6 ‘core’ managed portfoliosBy Eliot Hastie
- 21 Jan 2019Licence conditions placed on Sydney AFSLBy Adrian Flores
- 21 Jan 2019O’Dwyer steps down from politicsBy Adrian Flores
- view all