About 16% of planners belonging to the Financial Planning Association (FPA) have yet to get their Australian financial services licences. But FPA Manager Compliance Robert Tohill says reports that as many as 900 planners and advisers may be forced out of the industry are “misleading”.

He says that while only 84% of the group’s 578 members have been granted AFSLs, 5-8% of members are expected to look into other options.  Media reports have combined all advisers, planners and life agents under the same umbrella when discussing Financial Services Reform Act-related issues, which produces a blurred image of what’s really happening, he says.

“Members who have chosen not to obtain licences are looking at alternatives, whether it be merging with a licensed business or leaving the industry altogether,” Mr Tohill said. “Overall though, we’re confident most of our members will get their licences and adapt to the new regime quite well.”

Mr Tohill says the FPA is confident that the FSR legislation, along with the FPA’s Professional Partner Program, will help erase questions over the group’s quality of advice and professionalism.

Referring to the damning results of last year’s Australian Consumers Association/Australian Securities and Investments Commission “shadow shopping report” into the industry – which found that more than 50% of planners were not giving adequate advice – he says consumers should feel confident when dealing with a licensed planner.

“Although there hasn’t been such a great cultural shift for planners with this legislation as there has been with other industries, nutting out aspects of the practical sides of compliance hasn’t been easy,” Mr Tohill says.

“Consumers should feel confident that planners have been through the stringent licensing process.”