FPA welcomes opportunity to consult with Treasury on current stamping fee exemption
The Financial Planning Association (FPA) welcomes the opportunity to consult with Treasury on the merits of the current stamping fee exemption in relation to listed investment entities and continues to support the removal of non-client directed fees in all financial advice services.
In 2009, the FPA launched the FPA Code of Professional Practice and the FPA Remuneration Policy, which bring together a comprehensive set of ethical principles, practice standards and conduct rules. The Code, which all FPA members must abide by, outlines the responsibilities of members to act in the best interest of clients at all times and introduced the principle of client directed payments which was replicated by Government in the introduction of the Future of Advice (FOFA) reforms.
At this point in Australia, all other forms of product directed payments that a financial adviser receives from clients, have been banned, leaving most financial planners only receiving fee for service payments. Between 2009 and 2012, all of our members transitioned away from these payments to ensure that clients are receiving unconflicted advice. As a result, FPA members currently receive on average around 8% of their total revenue from investment commissions, with the majority of this being phased out by 1 January 2021 when grandfathered commissions will cease.
The FPA supports the government’s efforts to improve the quality of financial advice that all Australians receive. Ensuring that people receive unconflicted advice, that is in their best interests, is vital to the provision of financial advice that Australians can trust and rely on.