Financial planners have rejected suggestions their priorities need to be defined by law. Financial Planning Association CEO Jo-Anne Bloch says the industry’s critics miss the point about personalised advice.

“All personal financial advice must take account of the individual client’s needs and circumstances,” she said. That is already legislated, and applies regardless of the different remuneration schemes that planners work with.

Ms Bloch has been quick to return fire after industry superannuation providers called for new laws to clearly define the duties of financial advisers. They believe legislation should require the industry to act in the best interests of clients, rather than chase commissions on recommended products.

Industry Super Network spokesman Garry Weaven says a recent Newspoll shows most Australians agree with the group’s position. Indeed, 20% of respondents wrongly believed such laws already existed, he said.

Mr Weaven says consumers do not have the knowledge to readily distinguish good advice from bad and should have laws in place to protect them.

“This survey shows that Australian consumers want to have confidence the financial advice they receive is given with their best interests in mind. The current system, where there is a conflict between sales and advice, does not meet the needs of today’s consumers and should be reformed.”

The Industry Super Network believes many Australians have been advised to switch to private funds. These have not performed as well as industry funds but offer higher commissions to advisers.

But Ms Bloch says the Corporations Act already requires planners to give advice appropriate to the individual’s needs. And that isn’t necessarily a commission-free industry superannuation fund.

“Cheap products are not always in the clients’ best interests,” she said. “Especially if they restrict choice, flexibility, and overlook potential benefits.”