The FPA, while broadly supporting the initiatives, wants to delay implementation (which now seems to be happening), and has some concerns with some other areas. THE CEO of the FPA, has been quoted today saying it was important that the legislation achieved the following benefits:
Consumer benefits
- To help consumers know how to find a financial planner who is appropriately qualified, educated and works to high professional standards, and clearly separate these professionals from others who give advice
- To help consumers to easily understand what advice they’re getting, who they’re getting it from, how much they pay and how they will pay
Profession benefits
- To make sure the professional standards of financial planners are increased over the coming years
- To make sure that all who give advice put their clients’ interests first
I couldn't agree more.
In the midst of this talk for reform, maybe now is the time to talk about some other industry standards. It is my belief, and soon I will out it to a test, that the majority, no the vast majority, have no idea what happens to their money once it is put in the bank, sent to their super funds, or invested.
Having an ethical policy, or CSR page is good, but what is important in tranparency. Under the guise of commercial in confidence, there are a number of fund managers that will not reveal where they invest their funds. Errr, your funds.
How do you feel about mining? How about uranium mining? What about tobacco, or labour standards, or the use of child labourers by foreign multinationals? Regardless of what your personally held values might be, you should be able to invest in line with, free from the myth that your returns will be negatively effected by your decisions.
The vast majority of people fail to meet their retirement goals without advice. Clearly, returns are important, particularly in light of events over the last few years. However, even keeping this in mind, peoples priorities are changing. People are recycling, composting, growing their own vegies, and keeping some chooks in the back yard. On top of that, people are starting to become aware that there are industries that they don't want to support, and some that they do.
It is one of our guiding principles that we take peoples values into consideration. It would be nice to think that this might be the norm in the future, rather than the exception.
Did you find this post interesting or helpful?
Can you spare 2 minutes to comment, or share it with someone.
I'll even get you started.
The thing I liked/disliked about this post was
