The collapse of WA property group Westpoint should not deter Australians from consulting financial advisers, according to the Financial Planning Association (FPA) – even through 23 of its members have been caught up in the affair.

The financial devastation of hundreds of Westpoint investors has in large part been blamed on financial advisers who recommended the scheme to clients. But FPA CEO Jo-Anne Bloch says the collapse is not a reflection of the ethics and professionalism of financial planners generally.

“Investors who have lost large amounts of money through Westpoint are understandably bitter,” she said. “But the majority of financial planners in Australia provide ethical and appropriate advice to their clients in the context of long-term relationships.” 

Ms Bloch says the FPA is investigating 41 complaints against 23 of its members. She says it has issued “show cause” letters to several members, who have 28 days to respond before consideration of any disciplinary action. 

“Where FPA members are proven to have failed in their obligation to put client interests before their own, appropriate sanctions will be imposed by the FPA’s disciplinary committee.

“We don’t have the capacity to award compensation, so the FPA supports the role of the Financial Industry Complaints Service as a channel through which consumers can seek financial compensation for their losses.”