The Association of Financial Advisers (AFA) believes the Australian Securities and Investments Commission/Australian Consumers Association financial planners survey earlier this year focused too much on compliance, and the advice given in the survey wasn’t as bad as it was portrayed.

National President Robin Yates says the survey was “entirely focused on compliance issues”. (The findings also said many of the plans put up to potential clients included superficial and generic information, ignored clients’ requirements without saying why and failed to show how the recommended action was appropriate.)

“Compliance is often just about paperwork, and advisers that are fully compliant aren’t always providing good advice,” he said. “A balance between compliance and good advice ensures the best plan.”

Mr Yates also confidently spoke up for planners who spend their time servicing clients who make them more money. He said people who seek financial advice for smallish amounts of money shouldn’t expect the same level of time and effort from advisers as those who need plans for large amounts.

“There’s no in-between level for testing the adequacy of a plan,” he said. “Obviously if someone’s got a plan for $10,000 we’re not going to be as pedantic as we are with someone’s who’s got a plan for $500,000.”