Meeting with Andrew Wallace MP – Federal Member for Fisher

Jayne Graving and eight other local Sunshine Coast Financial Planners met with Andrew Wallace MP – Federal Member for Fisher, to discuss the impact of the Royal Commission on local Financial Planning practices and our industry in general.  The concerns and observations highlighted were:

  1. Clients with a relationship with the local Financial Planners represented, were not overly concerned or impacted by the revelations of the Royal Commission.
  2. That online insurance was not underwritten and therefore had a much higher chance of a claim being unsuccessful. In addition, it is not always competitively priced.
  3. The concerns for the public in attaining quality, affordable personal risk insurance advice in the future.
  4. Property is not considered a ‘financial product’ by the Corporations Act definition, and therefore property promoters are not bound by the same regulatory regime as financial planners. They are not bound to any client best interest duty.  The industry is steeped in commissions, kick-backs and lacks transparency.
  5. Concerns that Industry Super Funds are not regularly valuing all of their assets and therefore their performance is not transparent.
  6. Concerns at the lack of consistency (and misrepresentation) in Super Fund asset allocation standards. A fund could potentially have 70% growth assets (riskier assets) and still call itself a ‘Balanced Fund’.
  7. Concerns that the new education, training and ethical standards body – Financial Adviser Standards and Ethics Authority (FASEA) will not be effective. To date, it has not been inclusive or transparent which is concerning.
  8. Concerns that as an Industry, we may lose a large percentage of our senior and experienced Financial Planners over the next few years, and the impact this will have on clients.

The collective group of Planners are collating further information, which will be presented to both Mr Wallace and the Financial Services Minister, Stuart Roberts in the near future.

Disclaimer – This document has been prepared for the general information of investors and not having regard to any particular person’s investment objectives financial situation and particular needs. Accordingly, no recipient should rely on any recommendations (whether express or implied) contained in this document without having obtained specific advice from their adviser. Jayne Graving, Arch Financial Planners and Financial Planners Alliance Pty Ltd make no representation give no warranty and do not accept responsibility for the accuracy or completeness of any recommendation, information or advice contained herein and Jayne Graving, Arch Financial Planners and Financial Planners Alliance Pty Ltd will not be liable to the recipient or any other persons in contract in tort for negligence or otherwise for any loss or damage arising as a result of the recipient or any other person acting or refraining from acting in reliance on any recommendation information or advice herein except insofar as any statutory liability cannot be excluded Under Section 849 of the Corporations Law.