We know this is unacceptable and I unreservedly apologise to all customers affected. Poor advice
provided by some of our advisers between 2003 to 2012 caused financial loss and distress and I am
truly sorry for that.

Today we are announcing our Open Advice Review program. This is a new, far reaching program of
review and remediation with independent oversight, to deliver fair and consistent outcomes for
customers of CFP and FWL. This program demonstrates our commitment to make it right for our
customers.

At no cost to customers, the program will provide an assessment of the advice received, access to an
independent customer advocate and an independent review panel. The program will be fully
transparent to customers. To ensure we reach as many customers as possible there will be an
extensive national advertising campaign.

Before providing further details of the program, I’d like to make some more general comments.

The events considered by the Senate Committee occurred during the Global Financial Crisis, at a
time when most people, even when well advised, were losing money on their investments. The matter
of how to compensate affected customers was complicated. Our principle was to put customers back
in the position they would have been had they received suitable advice. We have already paid $52
million in compensation to more than 1,100 customers of specific advisers who were identified as
having provided poor advice.

We have transformed our CFP and FWL businesses, so that today they can perform the critical role of
providing quality and affordable financial advice to our customers. There have been changes in
management, structure and culture. We have also invested in new systems, implemented new
processes, enhanced adviser supervision and improved training.

However, I acknowledge there are views among some customers, and indeed in the Senate report
released last week, that our approach has not been sufficient for all our customers. We have listened
carefully and this program is a direct response to those concerns.

Open Advice Review program

The key features of the new program will be:

• Any customer who received advice from CFP and FWL between 1 September 2003 and 1
  July 2012 and has concerns regarding that advice will be able to call a dedicated number and
  request an assessment of any advice received in the review period;
• The review of the past advice will be conducted by a specialist Commonwealth Bank team;
  In conducting a review, the specialist team will share the information it has available with the customer and will invite the customer to provide information that the customer has available;
• Once the review is complete the customer will receive an assessment and the offer of an independent customer advocate funded by the Commonwealth Bank;
• A customer who does not agree or is concerned with the assessment will have the option of a further review by an independent panel, determining whether compensation is payable and, if so, how much;
• The Commonwealth Bank will be bound by the outcome of the panel’s determination. However, the customer will not be bound and will still have the option of taking the matter to the Financial Ombudsman Service or pursuing a claim in respect of the matter; and
• We will also have the process overseen by an independent expert who will make their periodic reports public.

The comprehensive nature of this Open Advice Review program demonstrates our commitment to delivering a fair and consistent outcome for customers. This program is in addition to the licence conditions previously announced by the Commonwealth Bank and the Australian Securities and Investments Commission.

In order to improve public confidence in the broader financial planning industry, we will advocate for improved adviser education and training, transparency in adviser quality such as the public adviser register and measures that improve the financial literacy of customers.

The way in which we have transformed our CFP and FWL businesses over the past three years shows our commitment to ensuring that the best interests of our customers are always our first and foremost consideration. This transformation brings CFP and FWL in line with our other businesses at the Commonwealth Bank.

I also want to acknowledge that there are 50,000 people who take pride in working for the Commonwealth Bank who also have felt let down by these events. Their focus on customers over many years has delivered excellent outcomes for over 10 million customers, the 800,000 Australian households who own our shares directly and the millions more who own them through their retirement funds, and the broader community around us.

The post Statement to our customers from Ian Narev, CEO of the Commonwealth Bank appeared first on AdviserVoice.

These awards acknowledge some of Australia’s best financial planners, the positive contribution they make to the financial future of Australians and the superior outcomes achieved for their clients.

CEO of the FPA, Mark Rantall, said that the Best Practice Awards showcase the high calibre of the nation’s financial planners including AFP® practitioners and CFP® professionals, the highest professional designation for financial planners recognised globally.

“They are a symbol of trust and excellence for all Australians seeking financial advice from a qualified and professional financial planner acting in their best interest,” he said.

National winners were chosen from all State winners and were announced at the 2012 Victorian State Awards ceremony in Melbourne, as all three national winners came from Victoria this year.

Michelle Tate-Lovery CFP®, Unified Financial Services, Cartlon, has been awarded both the Victorian as well as the National FPA CERTIFIED FINANCIAL PLANNER® Professional Best Practice Award. This award recognises worthy CFP® professionals who have demonstrated the highest professional standards embodied by an FPA member.

Michelle began her practice in 1994 to deliver holistic, tailored and strategic financial advice to clients, primarily in the allied health professions.  Proof of her success is seen in the long-term relationships forged with clients, some in excess of 20 years.  Michelle contributed to the FPA Transition to Fees Taskforce, the FPA CFP® Curriculum Taskforce: Ethics, Professionalism and Compliance and was a Panel judge for three years for the FPA’s Value of Advice awards.

Shane Lenehan AFP®, Silvan Ridge Financial Services, Warrnambool, has been awarded both the Victorian and National FPA Financial Planner AFP® Best Practice Award.  This award is designed to encourage and recognise the achievements of AFP® professional planners who reflect a commitment to both excellence and professional development.

Shane was awarded the national honour due to his willingness to embrace the Code of Ethics of the FPA as he services a wide range of clients from all walks of life and with very different needs and financial capacity. He understands that an on-going relationship will provide the best outcome for clients. He firmly believes that all Australians do better when they work with a trusted financial adviser who fully understands their financial position. He also provides mentoring for young advisers through the FINSIA mentoring program.

Mark O’Leary CFP®, Eluvia, Melbourne, has been awarded both the Victorian and National Future2 Community Service Best Practice Award.  This award goes to an adviser who has, in a pro bono or public service capacity, made an outstanding contribution to improving the circumstances of the most socially excluded or financially disadvantaged members of the community.

Mark has worked with the Cancer Council since 2011 in order to provide pro bono financial advice to cancer sufferers who often have serious financial challenges as a consequence of their illness.  Mark uses his involvement in the program as an ideal way of teaching emerging advisers in his practice the value of financial advice.  Mark was also instrumental in setting up a pilot program with an accountancy firm to provide financial advice and services to small and medium sized enterprises struggling due to the owner’s illness.

Mr Rantall said that he had been extremely impressed by the high quality of the financial planners nominated for both the State and National awards this year.

“The FPA has always strived to improve standards in financial advice, and it is wonderful to be able to acknowledge these outstanding financial planners as the symbol of excellence in financial planning that they are,” he said.

This year, in addition to the prizes awarded by the FPA, PortfolioConstruction Forum presented all three National winners with the choice of complimentary attendance to their Market Summit or Conference in 2013.

The post FPA recognises Australia’s top financial planners appeared first on AdviserVoice.

The post Research shows ‘double dividend’ benefit of professional advice appeared first on AdviserVoice.

The Financial Planning Association (FPA), an affiliate member of the FPSB, is the only body authorised to administer the world class CFP® certification in Australia on behalf of the FPSB. 

The FPA highlighted the impact the announcement would have on the future of the financial planning profession in Australia. 

“Having FPSB represent our profession in the international standards debate is a great moment for the future of financial planning worldwide, and in Australia. The FPA’s membership boasts over 5,500 CFP® professionals and, with FPSB representing all CFP® professionals; this latest announcement confirms the role our members play in the future of the profession. We will continue to work with the FPSB to represent CFP® professionals in Australia in striving to provide our consumers with the highest quality of trusted advice worldwide”, said Mark Rantall, CEO of the FPA.

“As an international standards organisation for the securities sector, IOSCO is making decisions on various issues that could impact the practice of financial planning and the role of financial planning professional bodies around the world,” said Noel Maye, CEO of FPSB. “As the non-profit, professional standards-setting body for the global financial planning community, FPSB will bring the perspective of over 140,000 CERTIFIED FINANCIAL PLANNER® professionals to the debate on issues such as investor protection and standards of conduct for financial intermediaries.”

ASIC Chairman, Greg Medcraft welcomed the announcement. “Financial planning can play an important part in the future wellbeing of many Australians. We welcome IOSCO’s announcement and believe that it will be to the benefit of the profession that financial planning is represented on a global stage discussing global securities market issues.”

The post Global win for CFP® certification appeared first on AdviserVoice.

The brochure is available on the FPA’s new consumer website, fpadifference.com.au. The site was launched this week as part of Financial Planning Week, an annual initiative held by the FPA to raise consumer awareness about the positive difference sound financial advice can make. 

Mark Rantall, FPA CEO, said the brochure speaks to the FPA’s fundamental commitment to supporting ordinary people’s quest for financial security. 

“The FPA has always been an advocate for consumers receiving sound financial advice from qualified, professional financial planners. Ensuring Australians understand what the financial planning process entails by providing clear and simple information such as that contained in this brochure is one way the FPA is reaching out to consumers to make sure they’re well informed,” said Mr Rantall. 

The brochure, which both consumers and FPA members can order to be sent to them free of charge, includes a range of helpful jargon-free information, such as:

•  ‘Things to consider when choosing a financial planner’ – highlights the importance of using a qualified financial planner
• ‘Why would I need a financial planner’ – outlines the benefits of seeking sound financial advice and addresses the different needs of consumers at different stages in life
• ‘How the financial planning process works’ – a step-by-step guide of what to expect when seeing a financial planner.

In addition to the brochure, the FPA has also created the first easy-to-understand guide on the Future of Financial Advice (FoFA) reforms for consumers, which is also available on the website. 

Mr Rantall added, “The FoFA reforms have been a major focus for the entire financial planning industry over the past year or more. Whilst these reforms were designed for the benefit of consumers there’s a much lower level of awareness among consumers about their practical effect. Our guide to the FoFA reforms will hopefully increase this level of awareness among consumers.” 

Mr Rantall went on to highlight another important feature of the FPA’s consumer awareness initiatives: choosing a qualified professional, who is a member of the FPA and preferably, who enjoys the CERTIFIED FINANCIAL PLANNER® (CFP) designation. He welcomed research findings that reported increased acceptance and understanding, among consumers, that CFPs must meet high levels of professional training and competence. 

Initial recent research findings, from Investment Trends[1], into the public perception of CFPs reveal, for example, that:

• If they were looking for a new (or additional) financial adviser today, a CFP designation was the most commonly cited qualification desired in a financial adviser (35%)
• 87% of those who currently use a financial planner as their main source of advice say their adviser made a positive or significantly positive difference to their life
• Among those who currently use a financial planner as their main source of advice, 89% said their most recent discussion with their financial planner was valuable or very valuable.

“Ensuring Australians are aware of what professional standards to look out for when choosing a financial planner and providing them with clear, simple information about financial planning are two important prerequisites to improving public trust and confidence in our profession.  In the end, we hope our initiatives will empower and encourage Australians make informed and therefore better financial decisions,” said Mr Rantall.

The post New brochure promotes better consumer awareness of advice as CFP designation takes hold appeared first on AdviserVoice.

The initiative aims to educate Australians on the importance of financial planning and encourage consumers to visit the Ask an Expert online forum where people can ask qualified trusted financial planners their questions.

Greg Medcraft, ASIC Chairman said:

“ASIC strongly believes in helping Australians to better manage their money and create a brighter financial future. The FPA’s Financial Planning Week is an important initiative and we support efforts to increase the community’s understanding of the benefits of good financial advice.”  

Alison Maynard, Investment Ombudsman, Financial Ombudsman Service said:

“We believe that Australians need professional financial advice and education about how to find good quality advice.  We support the FPA’s Financial Planning Week and the FPA’s initiatives to raise professional standards in financial planning for the benefit of all Australians.” 

Noel Whittaker AM CFP® said:

“Financial Planning Week helps Australians to get a glimpse of the positive difference that good advice can make to their financial future.  I always suggest choosing a financial planner who is well regarded in the industry. Above all, I recommend they be a member of the Financial Planning Association as they would have signed up to high professional standards and are pledged to a code of conduct.”

Paul Clitheroe AM, Chairman, Australian Government Financial Literacy Board said:

“Improving the financial literacy of Australians is vital to help achieve a secure future.  The FPA’s Financial Planning Week initiative is an important part of helping to educate and empower Australians to reach this goal and I encourage everyone to get involved.”

The FPA welcomed the comments, highlighting the importance of the industry supporting Australians in improving their financial well-being.

Mark Rantall, CEO of the FPA said:

“It is great to receive such strong support from the industry for Financial Planning Week, encouraging Australians to improve their lifestyles and financial well-being. The FPA continues to build awareness on how consumers can find a trusted financial planner that is qualified and will put your interests first. Every time. Financial Planning Week is just one way we are playing our part in doing this.”

Financial Planning Week takes place from 20-26 August 2012.

The post Industry unites behind Financial Planning Week appeared first on AdviserVoice.

The new and improved website is part of the FPA’s Financial Planning Week (20-26 August) and was launched this week. The initiative aims to encourage, educate and empower Australians to address their financial situation and discover the positive difference that sound financial advice can make.

Independent research released today by Investment Trends [1] shows that:

• A quarter of Australians who intend to seek a new financial adviser say they would use the FPA website to find one
• When consumers were asked: If you were selecting a new adviser today, how would you expect to search for such an adviser?  More would use the FPA website (27%) than do a Google search (24%) or check the ASIC website (16%).

“The research shows that the FPA website and our industry-leading Find-a-Planner directory are highly sought after by consumers,” says Mark Rantall, FPA CEO. 

“It is important for us to invest in the website to refresh it regularly and provide practical tools, useful information and multi-media aids for consumers. 

“With 10,000 members who are equally committed to our consumer advocacy cause, the new website also provides a valuable tool for members to use with their clients.”

The easy-to-navigate site is full of useful insights and speaks in jargon-free language for people looking to gain more understanding about financial planning.  It includes practical tools such as:

• New real-life story video clips to bring the benefits of financial advice to life
• A new ‘Ask an Expert’ online forum for consumers to put their questions to FPA financial planners which is already attracting high levels of interest
• A new consumer guide explaining financial advice in plain English.  Consumers can also order a free brochure to be sent to them
• ‘Find a financial planner near you’ directory that allows consumers to search for an FPA member or FPA Professional Practice in their region
• A plain English guide to the FoFA reforms to explain what the new laws mean to consumers in simple language.

Mr Rantall concluded, “We believe that our plain English guide to the FoFA reforms is the only resource of its type available to consumers.  This is just one example of the effort we have applied to ensure that consumers can be made aware of the progress of the profession and the higher standards of our members, including CERTIFIED FINANCIAL PLANNER® professionals.”

The FPA website receives up to 150,000 hits from 35,000 unique visitors each month, including up to 30,000 Find-a-Planner searches.

 [1] Source: Investment Trends August 2012 Advice and Limited Advice Report, surveying over 1,400 Australians

The post New website to assist Australians to make better financial decisions appeared first on AdviserVoice.

The national event is a week-long initiative (20 August-26 August) held by the FPA that aims to encourage, educate and empower Australians to discover the positive difference that sound financial advice can make to their financial wellbeing.

According to FPA CEO, Mark Rantall, Financial Planning Week is an important initiative to increase consumer confidence and trust in the industry.

“Over the past few years the FPA has been a dedicated and instrumental player in helping transform the financial planning industry into a respected and trusted profession,” said Mr Rantall.

“The FoFA reforms were a step in the right direction when it came to improving access of financial advice to Australians, and the FPA is dedicated to turning the financial planning industry into a profession for the benefit of qualified and trusted financial planners, and ultimately for the benefit of consumers as well.

“It’s important for consumers to understand the importance of seeking sound financial advice from a qualified, professional financial planner.  Financial Planning Week is an opportunity to show Australians why it’s important to seek financial advice and highlight the importance of a using a highly qualified financial planner such as a CERTIFIED FINANCIAL PLANNER®.”

During Financial Planning Week, the FPA will launch a range of tools for members to use when assisting Australians navigate the complexities associated with financial planning, which include:

• The new website at fpadifference.com.au, full of useful insights and jargon-free information, including new real-life story video clips to bring financial advice to life
• The new ‘Ask an Expert’ online forum for consumers to put their questions to FPA financial planners
• New consumer guides explaining financial advice in plain English

“The tools we’re launching during Financial Planning Week are great for members looking to add value with their clients and demystify financial planning for consumers,” said Mr Rantall.

“We’ve had a great response from our members already with over 3,000 of our new consumer brochure on financial planning already on request.  In addition we also have several Chapters around the nation hosting Financial Planning Week related events for both members and consumers.

“Research shows that people with a dedicated financial planner are more likely to feel financially secure and are more confident in dealing with their greatest financial concerns than those without.1 Financial Planning Week is the perfect time for our members to reach out and engage with Australians to highlight the benefits of financial advice from a trusted professional.”

The post Financial Planning Week aims to improve consumer trust and confidence appeared first on AdviserVoice.

Mark Rantall, CEO of the FPA said that the increase of nearly 65% over the same period in the previous year is a tangible sign that financial planners are embracing the call to build their future based on the bedrock of professionalism and education.

“These are welcome numbers and show increasing support of our mission to uphold the CFP designation as the gold standard in professional financial planning certification,” he said.

“Over 70% of our CFP practitioners are already degree qualified, and these members also enjoy additional benefits including stronger opportunities flowing to their businesses. Research commissioned by Investment Trends showed that over 86% of CFP professionals believe that having the CFP designation has a positive impact on their reputation,” he said.

While 58% of CFP professionals surveyed by Investment Trends agreed that current business conditions are challenging, they were least concerned about the ban on non-risk commissions under the FoFA reforms and 84% reported that their businesses were at least as profitable as last year (source: Investment Trends April 2012 Planner Business Model Report).

Mr Rantall said that these encouraging figures showed that taking up the certification journey was a sure way that financial planners could build their business, demonstrate to clients a clear point of difference and embrace the highest standards in the profession recognised globally.

The FPA is confident that the future pipeline for growth in the CFP designation is strong.  63% of the professional body’s Financial Planner CFP^® practitioners are degree qualified and eligible to be on the pathway to the global CFP certification.

Mr Rantall said, “For those who are not yet members of the FPA, our message is to join us before the degree requirement for FPA practitioner membership kicks in on 1^st July 2013.  The work we’re doing towards getting our Code of Professional Practice approved by ASIC to obviate the need for opt-in, as well as our ongoing effort to enshrine the term ‘financial planner’ are likely to be tremendously advantageous for financial planners who are part of the FPA community going forward.”

27 July 2012

The post CFP® designation achieves highest enrolment levels in post-GFC environment appeared first on AdviserVoice.

World-renowned, the CFP designation is shared by 5,500 Australian professional financial planners and 130,000 peers globally.

Mark Rantall, CEO of FPA said: “Amid some uncertainty surrounding financial planners with the FoFA reforms, the CFP designation has stood firm as the global standard representing the highest professional standards in financial planning today.

Feedback we receive from FPA members is that an increasing number of clients expect their planner to hold the CFP mark. There is recognition in the market that the designation is a real standard for excellence and expertise.”

Financial planners agree that the CFP credential opens the door to more opportunities. Recent research by Investment Trends shows that 67% of financial planners believe the CFP designation has a positive influence on their reputation, and 41% believe it has a positive influence on their business growth prospects.

“We encourage financial planning practitioners to take up their certification journey as it demonstrates to clients that they embrace the highest standards and accountability of their profession,” Mr Rantall adds.

The CFP Certification Program is comprised of the Four E’s, being Ethics, Education, Examination and Experience. The program can be completed over a four-year period.

To enrol in the CFP Certification Program, individuals must:

• Hold either an approved Bachelors or a Masters degree 
• Hold Authorised Representative or representative status with an Australian Financial Services Licensee (AFSL), and 
• Be employed in a position that satisfies the definition of ‘approved practitioner experience’.

Sitting alongside the CFP designation are two further specialist designations – LRS^® Life Risk Specialist and AEPS^® Accredited Estate Planning Strategist. Together, these three designations are complementary and, currently, there are only four FPA practitioners in Australia who hold all three marks.

Sean McGowan CFP^® is one FPA practitioner who has achieved all three designations:

“Financial planning is a continuous process of discovery and applying your knowledge and skills. New strategies occur all the time, and of course, you need to keep on top of legislation,” he said.

“That’s why ongoing education is so important in our profession. By doing these additional designations, you’re improving your own learning and understanding of the financial planning process. Then you can improve outcomes for your clients, which is a sure measure of professional success.”

More information and enrolment in the CFP Certification Program can be made through the FPA website.

9 July 2012

The post CFP® certification opens doors to more opportunities appeared first on AdviserVoice.