The Financial Planning Association (FPA) has omitted life insurance products from its remuneration policy, which has now been ratified by the Association’s Board.
The FPA Board’s formal approval of its remuneration policy signals another step towards transitioning FPA members away from commissions to a range of fee-for-service remuneration models for financial planning advice by 1 July 2012.
But in announcing the formal adoption of its remuneration policy (released as a draft discussion paper in early May), the FPA said that risk products are not within the ambit of its policy at this point in time, and neither are rebates which are product directed payments to dealer groups.
At the same time, however, the FPA says it needs to be clearly stated that it wants to encourage the entire financial services industry, including product providers and financial planners, to progress towards a transparent and appropriately labelled environment where clients can benefit from professional and unbiased advice.
the FPA … has established a working group to progress appropriate remuneration principles for life insurance products
To this end, the FPA advises it has established a working group to progress appropriate remuneration principles for life insurance products, to report back to the Association by early 2010.
Click here to access a final copy of the FPA’s Financial Planner Remuneration Policy.
