Since the launch of Investor's Advisor in October 1999, the FPA has experienced the stewardship of four different chief executives.
Despite legislative changes and the introduction of a number of other initiatives governing the industry during this time, most of the major issues affecting the industry have remained predominantly the same. They include the disclosure of remuneration, the need for increased professionalism and the fees versus commission debate.
In the very first edition of the magazine, the then FPA chief executive Michael McKenna informed readers the association was in the process of establishing guidelines on disclosure of adviser benefits for its members.
He wrote: "The FPA is committed to the full and frank disclosure of all fees, commissions and other benefits receivable by advisers and associates, and full explanation to clients of all financial implications of any recommendations."
Seven-and-a-half years later, financial planners still need to be conscious of this issue, but current FPA chief executive Jo-Anne Bloch believes the professional body has progressed the matter significantly.
"The introduction of the FSR [financial services reform] in 2005 was a significant change for financial planners and was very aligned to the framework of our rules and code (introduced in 1997). There is very little now that is not disclosed," Bloch says.
Throughout the years the FPA has been involved in formulating industry codes of practice with the Investments and Financial Services Association, but arguably the body's most significant move to improve disclosure was the release of its conflicts of interest principles in June 2006.
The need for financial planning to become a fully recognised profession is another issue the industry has had to deal with over the life of this publication.
In the second edition of Investor's Advisor, McKenna wrote: "There is rightly a community expectation which focuses on technical competence, fairness and integrity in the provision of service. Ethics are the hallmark of a profession, and a code of ethics and rules of professional conduct set a benchmark for gauging good practice and accountability for misconduct." While FPA members continue to strive for increased levels of professionalism, Bloch feels the right parameters are now in place to help them achieve it.
"FPA members adhere to enforceable codes and rules of ethical standards, professional conduct and behaviour when providing services to their clients. They achieve and maintain high levels of education and training and use their technical knowledge in the best interest of their client. These are fundamental requirements of a profession," she says.
"FPA's new professionalism framework provides a robust structure of professional membership, professional conduct and professional accountability, which will help our members drive the professionalism and growth of the financial planning industry in Australia.
Just like today, the fees versus commissions debate was high on the agenda of the FPA when the magazine was in its infancy. Over the past seven-and-a-half years, the FPA has deliberately favoured choice of remuneration structure for consumers and their advisers without endorsing one method over the other.
In edition 49, the association's then chief executive Ken Breakspear wrote: "The FPA has long maintained that it is for the individual consumer to decide how he or she wants to pay for their financial planning advice . what they do need is transparency - simple, clear and ongoing information about payment methods and bottom-line dollar amounts, which enables them to make informed decisions."
The FPA today continues to support choice for consumers in regard to adviser remuneration as long as it is clear and transparent, Bloch says.
"The industry does need to progress to the situation where all fees (including commissions) very clearly separates out the charge for advice versus the charge for a product," she says.
However, it would be incorrect to think the FPA will be using all of its energies to keep addressing the same issues over and over again into the future. To this end making advice more affordable is a priority for Bloch in the coming years.
"Australians should be able to access affordable advice when they need it," she says.
"The FPA is committed to reducing the compliance and cost burden for financial planners; to improving the disclosure regime for consumers; and making it much easier to access affordable advice."
