It recommended that the government amend the Corporations Act to change the term ‘general advice’ to ‘general information’, as well as recommend the term ‘financial advice’ and ‘financial product advice’ should only apply to personal advice as defined by the Corporations Act.
The FPA’s position on the issue follows an ASIC report that found most consumers were unable to determine the difference between ‘general’ and ‘personal’ advice.
FPA chief executive Dante De Gori said financial advice should only mean financial advice.
“This means it should always require that the advice addresses the needs, objectives and circumstances of the client, and the client’s best interests should always be prioritised over the interests of the advice provider and related entities. Anything else, should not be labelled advice,” Mr De Gori said.
“General advice poses a significant risk to consumers when they do not know how to distinguish if they are receiving a financial advice service, or are receiving financial product information.
“Following the findings of the royal commission, Australians should not have to contend with this uncertainty and we urge the government to implement our recommendations in full.”
[quote=Anony]Anon said “Isn’t it obvious no general advice and intra fund advice, basically i am selling you the industry super fund i work for get rid of it or at the least stop industry fund advisers charging for it.”
How is this different to AMP advisers recommending AMP products? [/quote][quote=Anony]Anon said “Isn’t it obvious no general advice and intra fund advice, basically i am selling you the industry super fund i work for get rid of it or at the least stop industry fund advisers charging for it.”
How is this different to AMP advisers recommending AMP products? [/quote]
once upon a time we could only invest in certain products, AMP have moved on and so should you.
Difference is AMP have choice of funds and fund mangers. Mate have a look at MyNorth super it is cheaper than most industry funds for cost and if you research on performance looking at like for like on asset allocation they actually are very good option and best interest in most cases it doesn’t matter either way who we give advice regarding platforms we charge flat fee’s to give advice and if that is a hold/recommend/adjust recommendation we charge the same quoted fee no different to an accountant, clients are paying us for advice plain and simple. Do a chant west and look at the mynorth index options. AMP advisers have choice on the APL we can use all major funds & can write off apl which is very easy to do a one page forms explaining the costs and reason why (best interest) to write off APL and I do all the time/ heck we are even sunsuper advisers and if we could I would love access to get an adviser code to make advice easier to other industry funds so get off your high horse.
AMP advisers give Personal advice not “general” we are licenced to give personal advice, we cannot give mysuper/intra fund/ mysuper advice like the muppets taking a pay cheque in an industry fund 90% of the AMP advisers are self employed small to med business, with only a couple of big practices in the network all with loyal client bases just like everyone else in the market.
S**T at least all our advice is backed by AMP who is going to pick up the tab if you stuff something up touch wood that never happens… What is a small dealer group or someone with their own AFSL going to do if they stuff something up I bet they will end up like Storm gone out of the market leaving clients in terrible positions and the clients will get peanuts in compensation…
AMP have a strong future
Anon said “Isn’t it obvious no general advice and intra fund advice, basically i am selling you the industry super fund i work for get rid of it or at the least stop industry fund advisers charging for it.”
How is this different to AMP advisers recommending AMP products?
Think Dante is reaching the Peak now with this gem…
Hasn’t this guy resigned yet.. Geez FPA members must be the bottom of the barrel. Find the cowboy just look for the CFP or FPA logo.
i wanna be like Danfe
thank you Dear Leader. now we need to organise a dance like the north koreans at martin place to honour and demonstrate our obedience to our dear leader
Why don’t we change it to “Barefoot Advice” ?
Yes – but concentrate on supporting advisers on issues that are going to see us wiped out or just resign and get someone who can.
Disclaimer: The FPA is a body that gets payments from groups like CBA FP etc etc. There opinions and statements are reflective of these groups. Any comments should be considered as conflicted in nature and do not represent the opinions of Financial Planners.
The banks have wanted this change for ages the FPA are just following their instructions.
Don”t tell me. Is that the FPA doing something useful for a change? Goodness me.
Isn’t it obvious no general advice and intra fund advice, basically i am selling you the industry super fund i work for get rid of it or at the least stop industry fund advisers charging for it.
I agree wholeheartedly. Next step is to call out intra-fund advice for failing to consider suitable alternative products for clients.
I firmly agree. It should be replaced by a term ” general information” because that is EXACTLY what it is. The word ADVICE is too frequently misinterpreted.
Helloooo FPA. Risk advisers ( you may remember them) have been saying this for years. We see the disasters every day! The question is, a lot of your big FPA funders have abused GENERAL ADVICE for years – so how have you managed to convince them to abolish GENERAL ADVICE ? What was the price ?
ASIC morons – General Advice is one of the most stupid concepts ASIC have allowed and given how many stupid things ASIC do that is saying a lot.
General Advice = PRODUCT INFORMATION.
It is NOT Advice and should never have been allowed to be called Advice.
The Banks, Insurance Companies and Industry Super have of course totally abused this rubbish of General Advice to flog products with zero AFSL compliance via unlicensed and uneducated tellers and Call Centre jockeys.
ASIC wake the Hell up – get rid of General Advice and call it PRODUCT INFORMATION !!!!!!!
But given the ISA’s will want to keep General Advice to flog Industry Super and the incoming Labor Govt.
How much should we bet ASIC do NOTHING to fix this ???