What’s behind the battle between advice associations?

Alex Burke,  Senior Writer,  No More Practice Education

A new association's membership has surged to over 4000 financial advisers - and a major concern among that cohort is how the AFA and FPA have responded to the Royal Commission.

The United Financial Advisers Association, led by chair Alex Vagliviello - who is also the principal of Charles Alexander Financial Services - distinguishes itself from other advice associations by being "100% focused on lobbying politicians and the media, advocating the concerns of advisers and seeking better outcomes for consumers."

Other member representatives include Wealthporte Financial Group adviser Robert Porte, licensee management consultant Michael O'Dea, Abacus Finance chief executive Kellie Lam and Finsure Finance & Insurance senior adviser Paul Martin.

Chief among the new association's concerns are the ending of grandfathering, the reduction of life insurance commissions to zero and the provision that advisers must be considered conflicted as long as they "stand to benefit financially from clients implementing their advice."

UFAA argues that "each time the Government takes steps to destroy our businesses, the financial planning industry does absolutely nothing."

"Yes," the statement continues, "the banks and other large institutions should be held to account for what they have systematically done, but what always happens is the non-bank advisers will be the ones wiped out by the banks' behaviour. The end result is worse outcomes for consumers, who in the end will always end up paying for the banks' misconduct, and we will be powerless to stop it unless we do something now."

It's worth noting UFAA previously existed as the Life Insurance Customer Group, a lobbying body aimed at arguing against some of the recommendations made in the original Trowbridge report.


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SCOTT LAMONT

29/10/19

Finally someone is speaking up for those of us who do nothing wrong,have done everything asked of us compliance wise,give good advice,often for zero return.The world has gone mad and those making these unfair and immoral decisions need to be held accountable because people lives are at stake.Advisers pay so many different institutions fees yet get nothing in return.Clients are laughing at the regulator and have sympathy for their adviser when they are told the true story,yet the regulations continue to kill a once vibrant industry.Clients who need our help will soon be unable to access that advice because of the costs to do so.Can someone with ethics and commonsense please talk to the Minister and explain what is going on before it is too late.

johnny Johnny Farquar

29/10/19

Destroy another industry in Australia. Government milked the farmers . Government took commissions from the advisers to Give adviser commissions to the rich insurers. Australia has lost the Australian spirit.

johnny Johnny Farquar

29/10/19

The Banks got away with everything IN THE ROYAL COMMISSION. Financial Advisers got flogged AGAIN. The groups who are supposed to support the advisers -FPA AFA are paid via banks, insurance companies, and superfunds . TOTAL CONFLICT OF INTEREST TOTAL CONTRADICTION WHAT CLOWNS OR POLITICIANS ALLOW THIS TO OCCUR when advisers have to disclose this conflicts of interest. THEY DO NOT SUPPORT THERE MEMBERS BECAUSE THEY SUPPORT WHO THEY GET PAID BY - THE bANKS INSURANCE COMPANIES AND SUPER FUNDS. Thats why advisers have not had a win with any legislation since 2005, advisers have just been flogged. THE SYSTEM IS FLOORED AND WILL NEVER WORK BECAUSE OF THE FUNDING AND OR MONEY PAID TO THEM

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