Financial planners have been making headlines for all the wrong reasons over the past few months.

Conflict of interest and an apparent unwillingness to embrace reform have put the Financial Planning Association (FPA) in the cross-hairs of the country’s business media and the scrutiny looks set to continue for some time.

The Australian Financial Review said in a strongly worded editorial last week that the FPA needs to own up to the problem and get serious about reform.

The association’s latest problems revolve around the Australian Securities and Investments Commission's (ASIC) damning scrutiny of AMP agents’ superannuation advice. ASIC said in July that half of the 300 recommendations it checked were unwarranted and were possibly influenced by commission-based remuneration schemes.

AMP has accepted enforceable undertakings as a result of ASIC’s findings. But the industry body has been criticised for not meting out its own punishment. AMP’s activities were technically on the right side of the FPA guidelines but the disparity between its approach and ASIC’s has left many questioning its sincerity on industry reform.

The Australian Financial Review says the AMP report was the first real test of the FPA’s guidelines – one that it has since failed. “Instead of playing for time, financial planners need to take industry reform seriously and not as another compliance box to be ticked.”

The organisation was quick to respond. CEO Jo-Anne Bloch says the newspaper has jumped the gun.

“Our inquiry is still going on. If there were any breaches of the FPA’s professional standards the FPA will refer the matter to the Complaints and Disciplinary Committee.

“We do not intend to be driven by the media in our quest for professionalism. We will take action based on facts, and due process.”

Financial advisers are also wearing much of the fallout from the $320 million Westpoint collapse. ASIC’s Executive Director of Compliance Jennifer O’Donnell says it will be doing more to ensure investors have reliable information and can make informed decisions on the risks involved with any product.