The Association of Financial Advisers is asking its members not to panic in the wake of the Future of Financial Advice (FFA) reform package announced by the Government on April 26.
Following a round of meetings in Canberra with Treasury, Government and Opposition officials and representatives, the AFA has said it is ‘… cautiously optimistic that the future for financial advisers, while challenging, looks bright’.
But while the AFA is cautiously optimistic about the future, its CEO, Richard Klipin, has raised his concerns about the personal impact the proposed FFA reforms may be having on some members of the adviser community:
“Some AFA members may be feeling that FFA threatens their livelihoods and may severely impact on the value of their businesses, which may, in turn, dramatically affect their financial situation,” said Mr Klipin.
Mr Klipin added that while major changes such as those outlined in the FFA reforms can lead to major new opportunities for those positioned to embrace the proposed changes, they can also create major personal stresses in the lives of those impacted by them:
We also encourage members suffering from stress to get professional counselling if they feel they need it
“These events rank amongst the top 10 most stressful life events. We urge members not to panic and to bear in mind the long consultation period and the considered approach being taken in Canberra. We also encourage members suffering from stress to get professional counselling if they feel they need it,” said Mr Klipin.
Mr Klipin said areas of concern the AFA raised with Canberra included:
- Opting in – how it works/where an adviser’s liability begins and ends
- Definition of fiduciary duty and the “best steps”
- Remuneration and commercial arrangements – including questions around volume -based remuneration
- Intra-fund advice – making a level playing field where advisers also have exemption from Section 945A
- Ensuring that the Independent Financial Adviser (IFA) segment remains robust and competitive
- Ensuring that the FFA reforms achieve their stated objectives – that is, ensuring more Australians receive good financial advice and are thus better funded, comprehensively insured and have financial choices in life
The AFA has also released details of its 2010 National Roadshow Tour, offering insights and topics such as:
- Successful business strategies from Award winning Advisers
- Policy, Regulatory and Government Affairs update
- Getting the right structure in your business
- Client Engagement and Advice Skills
Advisers and others wanting more details about the AFA’s National Roadshow 2010, being held in July, can click here.
