February 8, 2019
The Association of Financial Advisers has strenuously opposed what it refers to as the ideological determination put forward in the Banking Royal Commission final report to remove all conflicted remuneration.
AFA CEO, Phil Kewin, has said that while recognising the importance of the Royal Commission process and the primary focus upon the delivery of improved consumer outcomes, the AFA nonetheless objects to a number of the key recommendations relating to financial advice.
Kewin said that while restoring trust has been an overriding theme for banking and financial services, “…the AFA does not accept that an ideological determination to remove all conflicted remuneration should necessarily override all other considerations in the design of the framework for financial advice.”
…the AFA does not accept that an ideological determination to remove all conflicted remuneration should necessarily override all other considerations
He continued, “Access to advice, affordability and efficiency of the provision of advice should also be key considerations,” adding the AFA wants to ensure access to quality financial advice is readily available and not just reserved for the wealthy.
Kewin said the Royal Commission recommendations will only increase the cost of financial advice, when what is really needed are changes to reduce the cost and make it more readily available: “The Royal Commission has not put forward a case for why these recommendations will benefit consumers,” he said.
In an update to members, Kewin said he and AFA GM Policy and Professionalism, Phil Anderson, will be meeting with politicians in Canberra next week to discuss the Royal Commission’s outcomes and recommendations.