FPA deals with backlash over fee-for-service proposal
The Financial Planning Association (FPA) has assured members there will be no penalty for failing to comply with its proposed fee-for-service model after being inundated with questions and concerns.
Early this month the FPA released its financial planner remuneration consultation paper –recommending commission-based pay be scrapped – which received both support and strong criticism from other groups within the industry.
FPA CEO Jo-Anne Bloch has reassured members the association is not recommending hourly rate fees as the only alternative to commission-based remuneration.
“It is important to highlight that at no point has the FPA suggested banning commissions or requiring the industry to restructure their businesses overnight,” she said.
“The paper proposes a transition period to apply that gives the industry several years to consider how best to construct client-directed remuneration for new advice from that date.”
Early this month the FPA released its financial planner remuneration consultation paper –recommending commission-based pay be scrapped – which received both support and strong criticism from other groups within the industry.
FPA CEO Jo-Anne Bloch has reassured members the association is not recommending hourly rate fees as the only alternative to commission-based remuneration.
“It is important to highlight that at no point has the FPA suggested banning commissions or requiring the industry to restructure their businesses overnight,” she said.
“The paper proposes a transition period to apply that gives the industry several years to consider how best to construct client-directed remuneration for new advice from that date.”