FPA encouraged by FSI Interim Report

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The Financial Planning Association (FPA) welcomes today’s FSI Interim Report, in particular the observations that relate to the FPA’s 10 Point Plan.

Specifically, the Interim Report raised several of the FPA’s recommendations to the Inquiry around financial advice, as well as those made to the recent Senate Inquiry. These include:

• Raising competency standards for financial advisers
• A public register of advisers
• Giving ASIC the power to ban individuals from managing financial planning businesses
• Renaming general advice to ‘sales’ or ‘product information’
• Enshrining the term ‘advice’ so it only relates to personal advice
• Improved standards for products providers.

The FPA is also interested in the report’s initial responses to the issue of the underdevelopment of the retirement phase of superannuation and the fact that it does not meet the risk management needs of many retirees.

Dante De Gori, General Manager of Policy and Conduct at the FPA, said: “We will continue to focus on proposed solutions on default options in drawing down retirement benefits and mandating the use of particular retirement income products. It is critical we address this area, given our ageing population.

“We’re encouraged to see the Interim Report pick up important recommendations we made to the Financial Advice and ASIC Senate Inquiry, and look forward to contributing further to the consultation process,” Mr De Gori concluded.