The Financial Planning Association (FPA) has launched a new risk sub-committee to ensure that financial planning advice does not exclude business and life insurance risks.

The sub-committee is intended to remove regulatory impediments to providing good advice on managing risk, raise the level of professionalism in risk advice and increase education for financial planners on risk issues.

It will also look at taxation and any other disincentives to providing adequate insurance cover, including state-based taxes on insurance.

FPA CEO Jo-Anne Bloch says managing risk is an essential component of providing quality financial planning advice. The FPA advocates a holistic approach to wealth management, in that it is about building wealth and protecting it.

“The sub-committee has a broad mandate,” she said. “It will tackle policy matters affecting advice on risk issues and also guide the FPA’s work in other areas such as professional standards and education.”

Sub-committee Chairman and Financial Services Partners CEO Geoff Rimmer says the formation of the committee is important.

“It highlights protection being a consideration in every planning situation and gives us the best chance to resolve the issue of underinsurance in Australia,” he said.