Martix Planning Solutions co-founder, Rob Pedersen, has resigned from the Board of the Financial Planning Association because he says he has lost confidence that the FPA Board understands how to best represent planners.
In a statement outlining the reasons for his resignation, Mr Pedersen said the FPA’s stance on a number of critical issues, including remuneration, education, governance and the proposed merger with the AFA “… leads me to believe that the FPA Board does not take enough account of how the financial planning industry works.” He continued, “As a result, the FPA Board … seems reluctant to defend or properly educate the public and the government on the great work financial planners do.”
Mr Pedersen has concerns about the FPA Board’s ‘fixated’ approach to the remuneration issue, where he believes “… the vital issue is not how advisers are remunerated but the quality of the service they provide to their clients.”
Mr Pedersen has also expressed his disappointment that the proposed merger discussions between the FPA and the AFA appear to have stalled, leading him to believe that the FPA Board is not interested in a merger. If this is the case, Mr Pedersen argues the FPA “… will never represent the broad church of advisers in Australia.”
Three governance issues were also detailed by Mr Pedersen in his statement, which were:
- As a member of the FPA Board, he was not always kept informed on important issues affecting the future of the FPA and the future of financial planners
- No involvement in the recruitment process for the FPA’s new CEO
- That the matter of Parliamentary Privilege raised in the Ripoll Report (see Appendix 5) was not discussed, nor was it raised at any FPA Board meeting: “After learning about it by reading the Ripoll Report, I was further disappointed not to be provided, at any time, with information on the matter despite repeated requests.”
Mr Pedersen reiterated his call for a single association that represents only financial advisers and suggested the industry consider a model such as the Million Dollar Round Table (MDRT), which he said fosters a culture of mutual understanding and respect:
“We need one adviser association to speak with one voice representing the best interests of all advisers so that the interests of consumers are best served,” said Mr Pedersen.
Responding to Mr Pedersen’s comments, FPA Chair, Julie Berry, told riskinfo the Association had taken industry-leading positions on the issues of adviser remuneration and adviser qualifications, well before the release of the Ripoll Inquiry recommendations and the Future of Financial Advice reform package, two issues on which Mr Pedersen, as an FPA Board member, had access and opportunity for input.
Ms Berry also expressed disappointment regarding Mr Pedersen’s comments on governance issues, noting the FPA’s robust committee structure that works to develop policies that are considered by the Board, taking into account all points of view before acting. Ms Berry noted Mr Pedersen will have been part of this process.
On the proposed merger discussions between the FPA and the AFA, initially raised publicly by the Matrix Planning Solutions Board, Ms Berry said the Association had not received any formal proposals from the AFA. riskinfo understand the reverse is also the case.
