The Financial Planning Association (FPA) says an industry summit is preferable to a royal commission when it comes to winning back public trust.

The Labor Party wants a royal commission to examine Commonwealth Bank’s financial planning businesses and the Australian Securities and Investments Commission’s role regulating the industry.

FPA CEO Mark Rantall says a summit with a clear, independent charter to address necessary changes is a better solution that will ensure “inappropriate advice rooted in complex product distribution and conflicted remuneration practices are stamped out for good”.

“We would like to see the summit chaired by an eminent, independent figure,” Mr Rantall said. “We’re calling for all leaders to attend the summit and then sign up to recommendations.

“The FPA thinks it’s about time the entire industry regulated itself in co-operation with government, regulators and community stakeholders.”

However, if this is not possible the association says it will support a royal commission.

“Our primary focus is the impacted clients of Commonwealth Bank and ensuring we never see something like this again,” Mr Rantall said. “We need a system where when things go wrong, members of the profession act with speed and complete fairness.”