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Banks, financial planners and consumers have welcomed the Ripoll Report’s recommendations to address transparency and consumer confidence in the finance services industry.
The report’s key recommendations for the financial planning industry include financial planners having a fiduciary responsibility to their clients, a move to cease commission payments from product manufacturers to planners, and the establishment of a professional standards board for financial planners.
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This week AMP announced its support of the government’s recommendations.
“AMP fully welcomes the move towards greater transparency in the way consumers pay for financial advice,” AMP Financial Services managing director Craig Meller said.
“We are supporting all of our financial planning practices to transition to a ‘fee for service’ business model from 1 July 2010.”
Mr Meller further said that AMP’s investment and superannuation product manufacturers will no longer be able to include remuneration to planners in as part of their product pricing.
Jo-Ann Bloch, chief executive officer of The Financial Planning Association of Australia (FPA) said she was also pleased with report’s recommendations.
Ms Bloch said the FPA was particularly pleased with the longer term approach adopted by the report in addressing issues, and welcomed the government’s approach as “sensible and practical”.
“Consumers can feel more secure knowing that the financial advice provided is protected by a legal or regulated mandate,” Ms Bloch said.
The Ripoll Report was handed down by the Joint Parliamentary Committee on Corporations and Financial Services on 23 November 2009.
