What will advice look like in 2025?
The FPA has released a new discussion paper aimed at addressing the issues facing financial planning over the next five years.
Evolution of Advice: The Financial Planning Profession from 2020 to 2025 explores topics including the cost of advice, client relationships and the long-term survival of the profession.
Commenting on the report's release, FPA CEO Dante De Gori said: "We must look to the future and evolve our vision for the financial planning profession over the next five years."
He continued: "Feedback from members will underpin our policy and advocacy work so that we can promote new reforms that will benefit Australian consumers and financial planners alike."
“While the profession is going through a period of rapid change," De Gori said, "Australians’ demand for high quality, independent and affordable financial advice remains undiminished. The FPA’s policy platform provides an opportunity for us to lead the conversation about the future of financial advice in this country and how we can better serve Australian consumers."
ASIC slams adviser fees
ASIC has released a new report that paints a bleak picture about the state of adviser fee disclosure statements.
The regulator collected 1,496 FDSs from 30 licensees, and commissioned a compliance consultant to review 176 of those in detail. What was found ranged from "less material and technical breaches" to more significant ones.
The consultant also found that 80% of the sample surveyed did not include the required information about services that clients were entitled to receive, 73% didn't cover all information about services that clients received and 44% didn't include the amount of each fee paid by the clients.
Commenting on the findings, ASIC commissioner Danielle Press said: "Our review has found widespread non-compliance with fee disclosure obligations across the sample of AFS licensees and their representatives, suggesting that compliance with the FDS and RN obligations may be an industry-wide problem."
She added: "Consumers are at risk of receiving inaccurate fee disclosure statements or in some cases, none at all. This is a timely reminder that while disclosure alone is not enough as a consumer protection mechanism, transparent and timely disclosure still has an important role to play."
You can read the report here.
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