New FPA CEO, Mark Rantall, says he is determined to represent the interests of his members as he navigates the Association’s path through the current array of industry reform debates.
Mr Rantall shared his views with riskinfo on several key topics, following his earlier declaration of continued support by the Association for retaining the payment of commissions to planners for life insurance and income protection advice.
While Mr Rantall supports the FPA’s remuneration policy position to ban investment and superannuation commissions for its members from 1 July 2012, irrespective of proposed reforms tabled by the Government, he sees life insurance products as a distinctly different proposition.
Under life insurance products, Mr Rantall believes the client has greater control over the adviser continuing to receive remuneration. For example, he points out that a life insurance policy holder must continue to pay their premiums in order for the adviser to continue to receive their renewal commissions, but if the client stops contributing to their investment or superannuation account, their adviser would usually continue to receive their annual commission renewals, regardless of whether any services are provided.
Mr Rantall shared a vision of the financial services industry in ten years as one in which:
- Public confidence has been restored in the industry
- Financial advisers are perceived by consumers as proud professionals
- There will be no ‘media circus’ surrounding the activities of any disreputable planners
- Change and evolution are managed in a more disciplined environment
It appears Mr Rantall will be adopting a custodial approach to his tenure as FPA CEO. He strongly disagrees the FPA’s agenda is driven in any way by institutional members and speaks with passion about his role as an advocate for advisers, ‘… fighting on their behalf every day…’
He has confidence that most advisers will make a successful transition to a fee for service environment, believing it will be easier to make this transition than it will to continue to ‘…defend the indefensible…’ when it comes to conflict of interest issues, real or perceived, surrounding adviser commissions for investment and superannuation products.
Mr Rantall supports the principle that appropriate insurance advice should underpin the foundations of all financial plans, whether that advice is provided by the planner or outsourced to a risk specialist, and sees the untold stories of what happens when there is no insurance or inadequate insurance in place as a powerful case to advance the cause of insurance and wealth protection amongst Australian consumers.
