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Financial planners to shift to fee-for-service model

Staff Reporter 1 minute read

Financial planners could move to a fee-based remuneration model by 2012.

The Financial Planning Association (FPA) said last week it would encourage financial planners to embrace fee-based remuneration as the standard model for financial planning and revealed that it had issued a consultation paper inviting feedback from planners and the broader community about remuneration.

The consultation paper argues that changes from commission remuneration are necessary to reduce the potential for bias, perception of bias and to improve the overall industry’s sustainability as well as consumer confidence in the profession.

“The FPA Board, supported by FPA member committees, has given this great thought and concluded that a move away from commission-based remuneration is key to protecting both consumers and the reputations of financial planners,” FPA chief executive Jo-Anne Bloch said.

“We fully recognise that this might be a difficult time to discuss such a change but we also recognise that change is afoot whether we like it or not,” she said.

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Financial planners to shift to fee-for-service model
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