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Fear and loathing

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3 minute read

It was brought to my attention last week that a number of financial planners are eager to voice their anger and distrust of industry bodies.

However, their comments remain behind closed doors.

It is not necessarily fear of repercussions by industry bodies towards individual advisers' businesses that has left many to rage in silence, but perhaps it is more about picking the right battle.

In this instance, adviser comments were prompted by coverage of the FPA's decision to terminate Storm Financial's membership, and moreover, ASIC's silence.

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There seems to be a general consensus that the dramas of Storm will not dissipate any time soon.

However, the Storm debate seems to be the least of our industry's concern.

Another, larger question must be addressed - what exactly does the corporate regulator do for this industry?

While the FPA has rubbed many advisers up the wrong way with their take on Storm and other industry matters, surely the association should be credited with actually lending their voice on the matter?

Yes, many of you say it's all too late and you're just a phone call away from becoming former association members. Is cancelling your membership really the answer?

Could it be that the FPA simply has its hands tied?

Or is that too much of a cop out or too naive a comment to make?

Yet again I ask where is ASIC in this mess?

Why is it such a powerful organisation can approve the licence of a business one minute and then seemingly walk away from the destruction the next?

Is it also government or legal bounds that stop ASIC from speaking?

Perhaps the regulator is a silent negotiator and invisible action taker - a modern day champion of the Scarlet Pimpernel if you will.

While the industry sleeps, perhaps there is a band of suit-wearing government pen pushers dashing around the country righting the wrongs. Then again, perhaps not.

At this stage of play industry participants are not interested in someone to take the blame.

All that is needed is for those in the industry to be given assurance that the occasional banging of chests will deliver a workable solution.

IFA readers, how do you view your industry associations? Do you think current associations are doing their jobs?

What suggestions could you offer to your industry bodies?