Paul Tynan, the Connect Financial Service Brokers CEO says the excess and self-interest of industry groups lobbying to ensure their own interests was the cause of the problems and complaints around the FOFA legislation.
Rather than holding the Government responsible as the Opposition has, the industry merger and acquisitions specialist has directed the blame squarely on, “the overabundance of self interest groups lobbying intensely to ensure that the interests of their particular sector, company or association are met – even if above those of the industry or consumer.” Tynan has also suggested that these same groups are responsible for stopping a balanced approach to the latest FOFA reforms.
Part of the solution for FOFA improvement Tynan suggests would be to create transparent aligned or non-aligned advice where, “the adviser is in a salaried position and licensed through a bank or industry fund. There is a restriction of ownership of client, and buyer-of-last-resort terms are in place.” As opposed to non-aligned advice where Tynan sees as, “advice is where the adviser is a self-employed business owner and there is no restriction with respect to client ownership, and if the adviser wishes to leave a licensee the clients are clearly transferable.”
The CEO has made it clear that with the fourth largest fund management industry in the world, and a pool of retirement savings of more than $1.6 trillion in assets, “there is a lot at stake.”