The war of words between the Financial Planning Association (FPA) and the Association of Financial Advisers (AFA) continues following an FPA proposal to move to a fee-based pay structure.

Association of Financial Advisers (AFA) CEO Richard Klipin last week called for greater clarity in the definition of “fee for service” and “commissions”, warning the FPA that the introduction of fees for service won’t guarantee an end to potential conflicts of interest.

“If we accept that a fee can be directed by a client but we allow that fee to be paid by a product provider, isn’t it still a commission, no matter what you call it?” he said. “Isn’t this fee still open to the same conflicts of interest as commissions?”

The FPA hit back in a statement, describing the AFA’s definition as unhelpful and self-serving.

It says “a strong community view” that bundled commissions are paid for the promotion of a product, which opens planners to the accusation that they “promote advice in the interests of the planner and not the client”.

The FPA says “a profession should not be beholden to product providers”, and says “commissions are tainting the advice profession”.