- Jim Taggart Appointment
- Students Embrace Financial Planning Contest
- Licensee Leaves AMP/AXA for MLC
- FPA Critical of CHOICE
Jim Taggart Appointment
Immediate Past President of the AFA, Jim Taggart, has been elected to the Board of the Asia Pacific Life Insurance Council, representing Australia.
The Council represents many thousands of advisers across the Asia Pacific region, including India, Hong Kong, Taiwan, Singapore, Australia and New Zealand.
Mr Taggart said he feels honoured to have been nominated and accepted to the APLIC Board in order to represent the interests and views of Australian financial advisers.
Students Embrace Financial Planning Contest
AMP’s University Challenge has already attracted 171 participants, the group said.
Participants can register individually or as a team for the Challenge, which offers university students an opportunity to gain practical financial planning experience. There are currently 119 teams registered.
According to AMP, entrants have come from all Australian states, with the University of Melbourne leading the way with 54 students registered.
Entry to the competition closes on 9 September, with finalists announced on 30 September 2011.
Licensee Leaves AMP/AXA for MLC
The merger between AMP and AXA has resulted in the defection of Sydney-based Integra Financial Services (Integra).
Integra, which was previously a member of AMP’s Charter Financial Planning, has announced its move to MLC’s Garvan Financial Planning, effective 1 August 2011.
Managing Director of Integra, Deborah Kent, said the move was a result of the merger between AMP and AXA and the proposed Future of Financial Advice (FoFA) reforms.
“With the proposed changes under FoFA along with consumer education around fees, commissions and volume based bonuses, it was important to us to align our business with a licensee who fits our business model and will partner with us into the future, embracing industry change and assisting in building good advice businesses,” Ms Kent said.
Integra has three authorised representatives and over $90 million in funds under management.
FPA Critical of CHOICE
The Financial Planning Association (FPA) has raised concerns about the CHOICE Big Bank Switch campaign, and what it calls a ‘double standard’ in relation to commission.
The CHOICE campaign, launched this month, invites Australians to join a network of mortgage customers in a bid to force lenders to offer ‘group deals’. In return for promoting the service, CHOICE has admitted it will receive a referral fee.
Under the heading ‘disclosure’ on the CHOICE website the consumer group states: ‘One Big Switch will pay CHOICE a referral fee to help cover the costs of creating and delivering the CHOICE Big Bank Switch campaign, surplus funds will be used to fund ongoing and future campaigns.’
The FPA has criticised CHOICE for opposing commissions paid to financial advisers but accepting them for their support of the Big Bank Switch.
Mark Rantall, FPA CEO, said: “We believe this campaign is hypocritical of previous arguments made by CHOICE against commission payments to financial advisers. CHOICE has argued over many years for the banning of commissions and supported the ISN’s position on getting rid of ongoing and asset based fees for providers of financial advice, however it is apparent that the Big Bank Switch campaign does just that.
“CHOICE is displaying double standards on payments to those providing financial advice.”
