The entry point into financial planning is too low and the FPA must lift it significantly to make the industry a profession, former Woolworths chief executive Roger Corbett has said.
Speaking to delegates at the FPA 2007 National Conference in Sydney yesterday, Corbett introduced himself as a former businessman and also new retiree who had been seeking financial advice.
"In talking to a range of advisers in the last 12 months, I have found the professional level varies dramatically across the industry and the openness and disclosure varies," Corbett said.
"If this institution wants to give the leadership this industry requires then it needs to develop a couple of things. That the standards of qualification provide the highest level of proficiency and . . . there is no way there can be a conflict of interest.
"Your fee structure should allow you to be independent. If you fail to achieve these two things, they will come about by Government regulation anyhow.
"I want an adviser who is proficient in their knowledge of his or her job and I'd be happy to pay but I want to know that the service is not qualified by any other source of income."
Corbett also commented on the industry's conflict of interest. He said the taking of commissions has left the industry compromised.
"Secondly there is an immense conflict of interest," Corbett said. "Why the media and papers are talking about it is because people are concerned.
The taking of commissions has immensely compromised your industry and developed a cynicism that is widespread.
You can't purport to give financial advice to recommend a product and get commissions."
Corbett retired from his job as Woolworths chief in October 2006.
