Andreas Kettemann, director of Western Australian multidisciplinary practice Carbon Group, called out the FPA’s recent advertising campaign in its Money & Life member publication with life insurer Nobleoak in a communication to the industry association seen by ifa.
The insurer, which is currently gearing up for an IPO on the ASX, has positioned itself as an alternative challenger brand in the wake of the royal commission and sells primarily through direct channels.
“Could you please elaborate on why the FPA is advertising for direct life insurance when their members are relying on retail life insurance sales?” Mr Ketteman said.
“Could you please explain how this is helpful? You realise that the recipients are financial planners who have access to life insurance products?”
In a response to Mr Ketteman, a spokesperson for the FPA said the campaign had been intended to target advisers’ personal insurance needs and was not meant to be targeted at FPA members’ clients.
The spokesperson conceded the industry body had received “mixed feedback” from members about the campaign, and that the magazine’s publisher would be “more discerning” about advertising dollars in the future.
FPA chief executive Dante De Gori told ifa the campaign, which appeared in the June/July issue of the member magazine, had caused a “misunderstanding” among some of the association’s membership.
“The FPA would not and has never actively promoted direct offers to our members’ clients,” Mr De Gori said.
“The FPA represents the interests of Australia’s professional community of financial planners and the public. Money & Life is a valuable resource for professionals working in the financial planning profession to stay ahead of industry trends, succeed in their career and grow their financial planning practice.”
The move comes at a challenging time for the risk advice sector, with retail insurance sales having almost halved over the last seven years as the LIF makes insurance advice increasingly uneconomic. Mr Ketteman’s dealer group Synchron has also indicated its risk new business has dropped $4 million over the last financial year alone.
Peter Johnston, executive director of the AIOFP of which Mr Kettemann is also a member, said it was important for advisers to take a look at “what an association actually does on the ground instead of the promotional optics”.
“Direct product selling is an anathema to an adviser’s livelihood and should be rejected, not promoted, by an organisation describing itself as supposedly supporting advisers’ best interests,” Mr Johnston said.
I recently chose to cancel my membership of the FPA. Glad I did as the organisation no longer represented me and following in the footsteps of many an adviser who have also left, I now ask myself why did I ever trust Degori and his mob of cutthorats. They have and continue to nothing for me or you as an adviser just simply work with the instos and Government to undermine us while selling BS courses not worth anything substantive according to FASEA. Thanks for nothing FPA
Really this top heavy organisation is in big trouble, reducing memberships , scratching about for other
income streams to pay inflated wages even though it goes against members interests. They are slowly fading into irrelevance. Id assume a membership fee hike will come soon as they wont reduce expenses. What we need right now is someone to step up and take control of our communcation to the government. These guys are out if thier depth. The existing people couldnt get a pothole fixed in thier local electorate. We need to employ hard nosed lobbyists that understand the industry and that can get a few clear messages out there for us. We should push back and say no to things! We definently do not require lily livered ex planners from the past with no lobbying experience and a yes man attitude. Lots of failed planners that need the security of living off member fees and a set wage. Why are we letting these guys represent us? We know what we want but we allow them time and time again to say they represent us and to negotiate in our place. We trust the wrong people. Wake up guys. Sorry to say but these guys are not our future, if we dont realise this we won’t ever get respect or be a force to be reckoned with. We are a big group we should have a lot of sway with the government, but we are split into little weak camps, we are therefore easy to defeat. We need to fight more, us planners need to unite, im sick of others talking for us and getting no where. We can do this but we need to unite under one banner. Can we do that for our best interests for once?
They need to take lessons from the top lobby groups such as the Minerals Council and the Pharmacy Guild.
The FPA and AFA have never ever actually represented advisers. They represent the big end of town just like the FSC. If they could eliminate all the independent advisers then they surely would so that the big end of town can promote their junk without any scrutiny from the only people who actually ever work with anyone elses best interests at heart… us advisers.
Are any independent advisers even still associated with these crooked organisations and with criminals at the helm?
no shame
I’d love to hear the mixed feedback, everything I read was negative.
You can cover up a lot of mistakes but eventually something becomes very obvious.
The FPA is compromised because of its financial needs. Examples are the CFP program, the professional practice program, the fact they accept employers to pay all their advisers’ membership.
Here their need for money shows up in the most embarrassing way possible.
FPA has been a reactionary body. The moment for strong lobbying was BEFORE the legislation crafted. Get rid of things which do not serve you positively in your life. FPA a waste of $$. FPA should have exited corporate relationship with AMP – not a ” fit and proper” person. Alas, I have done the only thing I could have done as a single voice – left.
I hope Elle got her bonus for getting more advertising revenue into the FPA. It just shows the absolute distain the FPA has for its members. What is more insulting is the response and excuse that the advising was targeted at advisers. All advisers know direct insurers sell rubbish cover. The FPA should know this too, but as they have shown time and time again they are more than happy to sell their members down the river for their own gain.
So what’s good for the goose is not good for the gander? Is at being a bit Hippocratic or I mean hypocritical?
Hippobobottamous! Both hilarious and utterly disgraceful.
There are several issues here 1) The FPA is very clear as to whom they represent. It’s “ALL” participants in the advice industry and that includes those participants like NobleOak…..or AMP or a licensee…Personally I believe those firms are big enough to stand on their own two feet and they should be representing the Public and Advisers regardless of whom they work for. Dante and the FPA Chair have both said they just don’t represent Advisers. So why is this adviser upset?
2) Why would any Adviser want to be a member of a body that has that conflict. That is the very reason why we’ve got so much red tape, a lack of representation and members of the FPA are clearly complicit in this red tape.
3) It’s a cultural issue for the FPA, where the needs of the FPA are put first and that’s why the CEO needs to step down.
Yes, they are the “Financial Planners Association”. Why on earth are they representing anybody else? Is it money?
No they’re not…they’re the Financial “Planning” Association. hence represent (equally) both AwareSuper and the AwareSuper planner…. that poor planner being blamed and used as an excuse for fee for no service. Hence they’d never stand up for AwareSuper Planners or Bank Planners or any Planner working for a license as they have to represent both. The FPA dosen’t understand both parties have different interests.
NobleOak doesn’t provide advice
but it’s a participant in the financial services industry and to quote the FPA “we represent all participants equally.” whether you’re NobleOak or an Adviser selling NobleOak they’ll represent both. “equally” personally I think NobleOak can represent themselves and we need leadership to represent Australians and Advisers.
The FPA have always kowtowed to the big end of town, never really backed or fought for the rights or survival of their members. The FPA have been complicit in the demise of our industry. What a waste of space.
Another reason why our industry endures so much scrutiny when you have our so-called ‘representative association’ promoting direct life insurance sales. Membership cancelled immediately.
FPA – Faulty Towers
Gee, there’s a surprise! FPA filling their pockets via deals with companies who compete with their members!!!
FPA, when are you going to work 100% for your members?
There also seems to be lots of divisive non core ‘woke’ projects coming out of the FPA. Who’s paying for this and what’s the agenda?
Yes, all that stuff is not PR but a distraction. Them getting the scholarships is great but everything else is not suitable.
The FPA is fee for no service.
If you’re the CEO of CBA those professional partner fees were worth every cent.
Classic. The FPA is broken and its entertaining watching them squirm. Not sure what value they bring anymore