In a damming attack directed towards financial planners, The National Tax and Accountants’ Association (NTAA) has opened up a can of worms by labelling planners as being “bereft of integrity” and warning consumers against taking advice from a planner.
FPA Chief Executive Mark Rantall has reacted to the comments regarding them as “grossly offensive” and “trivialise an important social issue and defame members of the financial planning profession.” Both The Association of Financial Advisers (AFA) and Financial Planning Association (FPA) have defended the industry against the NTAA’s scathing attack, demanding an apology on behalf of members but so far no apology has been forthcoming.
The NTAA’s attack was in response to an estimated 3,000 to 4,000 investors in Queensland, New South Wales and Victoria loosing around $3 billion, after the collapse of Storm Financial in 2008 and warned against taking advice from a “stranger” saying that, “we teach our children about stranger danger, but we don’t always listen to our own advice.”
Shadow minister for financial services Mathias Cormann has weighed into the fracas defending the financial planning industry, describing the National Tax and Accountants’ Association’s comments as “reckless and irresponsible”. The senator has added that “financial planners and advisers provide a very important service helping people to improve their financial health and well-being by managing financial risks and maximising opportunities.”