Parliamentary committee to probe adviser ‘anger and frustration’

Amid growing disquiet among financial advisers about the cost of the Australian Securities and Investments Commission (ASIC) levy, the two largest financial advice organisations will have their chance to voice their concerns to a key Parliamentary Committee today.

Both the Financial Planning Association (FPA) and the Association of Financial Advisers (AFA) are scheduled to appear before the House of Representatives Standing Committee on Economics as part of its ongoing Review of the Four Major Banks and Financial Institutions.

Also scheduled to appear before the committee are the Finance Brokers Association, Easton Investments and life/risk focused financial planning licensee, Synchron.

The chairman of the committee, Victorian Liberal back-bencher, Tim Wilson, has already signalled that the regulatory cost being imposed on financial advisers will be high on the list of questions being asked.

He also signalled that there would be questioning around the number of financial advisers choosing to leave the sector and the reasons why.

“There is ongoing anger and frustration from financial advisers about regulation surrounding their sector, the Committee will also scrutinise the justification and consequences that lead to financial advisers leaving the sector and the increasing limit of financial advice to those who cannot afford upfront payments,” Wilson said.

The financial planning groups have not appeared before Wilson’s committee since around May, last year.