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NEWS > FINANCIAL PLANNING
Advisers to boost political clout
Monday, 8 March 2010 12:30pm
By Ruth Liew  |  In Financial Planning

Licensees and advisers have a new platform to get a clear message to the Government about the value of advice, at a time when the retail industry "has been found wanting", said AFA chief, Richard Klipin.

The new Licensee Leadership Forum (LLF) operates three-fold: policy development, government interaction and policy, and incorporating licensees within the AFA media strategy.

The forum, launched by the Association of Financial Advisers, will provide a platform that will also allow advisers and licensees to adopt a cohesive approach to address the way the advice industry is portrayed in the media, said Klipin.

Previously the AFA did not have an official framework similar to this new forum for licensees. The move means licensees will now meet three times a year to discuss their strategies.

It comes at a time when the retail industry "has been found wanting in getting a clear message to the government and regulator," he said.

"For three years [the AFA] has been working to engage with licensees across the market place to get them involved.

"Based on their feedback what we've done is take it to the next level and gave them a forum within the AFA," said Klipin.

The forum also comes at a time when planners continue to be branded negatively on a wide scale in the media, particularly after the fall of Storm Financial and advisers' roles in pushing failed MIS products such as those offered by Timbercorp and Great Southern.

Meanwhile the Financial Planning Association of Australia said it has two forums for its 600 principal members, who are Australian financial services licensees: the Small Principals' Forum, chaired by Brad Butler CFP, and the Medium to Large Principal Forum.

In response to the AFA LLF initiative, Jo-Anne Bloch, chief executive of the FPA, said: "Unlike the AFA, the FPA's principal members are also committed to the FPA through contractual membership, which has a set of professional obligations attached to it. So the FPA has a very close and engaged relationship with our Principal members who in total represent about 90 per cent of the financial planning industry."

"The FPA as a professional body represents the interests of the profession when dealing with Government, and with our stakeholders like ASIC. Our messages and policies have been well received," she said.

In a response to the LLF, licensee Pierre Kraft from Aon said in a statement: "We not only need to work together on the issues confronting advisers, we also need a consistent message.

"The LLF gives us all the opportunity to work together to address issues of common interest and to collaborate on key policy issues in order to create vocal and effective lobbying campaigns."

Phil Aris, from Total Financial Solutions, said: "Politics is a numbers game and as licensees, we know we need to get our collective voice heard in Canberra."

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