The Financial Planning Association (FPA) will appoint three new directors to its Board at its AGM in November.
Following an unprecedented twenty three candidates standing for election, CFP practitioners Neil Kendall, Peter O’Toole and Julie Matheson have been elected as Practitioner Members of the FPA Board.
“The board represents the voice of our members so we are excited that these three experienced Practitioner Members were elected,” said FPA Chair Julie Berry.
“I’d like to thank all twenty three candidates for standing and congratulate, Neil, Peter and Julie on their successful election. They will each bring a wealth of experience and dedication to the Board.”
Of the three new Board members, the appointment of Ms Matheson is notable because she was previously criticised by the FPA Board for the nature of an individual submission she made to last year’s Inquiry into Financial Products and Services (the Ripoll Inquiry). In Appendix 5 to the Ripoll Report, the FPA Board was in turn was censured by the the Chair of the Inquiry, Bernie Ripoll, for the approach it adopted towards the circumstances of Ms Matheson’s submission.
In other Board changes, Martin McIntosh, who stood in as an appointed director in June 2010 to replace Rob Pedersen, will step down.
Ms Berry’s term as Chair of the FPA Board will also end at the AGM in November, where she will be succeeded by Matthew Rowe.
The Board announcement comes after the FPA last week argued that the banning of commissions and introduction of fee for service make the “opt in” model redundant.
Asset based fees for financial advice are not “commission like”, according to FPA Chief Executive, Mark Rantall, and should not be lumped together with commissions in current FoFA reform discussions.
“It is concerning that there is an ongoing belief that commissions are the same as asset based fees,” Mr Rantall said.
“Under a fee for service, which can include asset based fees, on-going fees can only be charged if a service is being provided. This is clearly spelt out in the agreement signed between a client and their adviser. The client has the power to turn off the fee at any time and the fee is reviewed between the client and adviser on an ongoing basis.
“The banning of commissions and the requirement for fee for service makes the ‘opt in’ model redundant. It merely becomes an administrative burden for the adviser and the consumer,” he said.
The FPA continues to lobby for full disclosure and transparency at all levels and with all participants in the financial services industry, not just financial advisers.
