FPA policy set to ‘dob-in’ the dodgy

19 November 2009

The Financial Planning Association of Australia (FPA) is cracking down on misconduct in the financial planning profession by unveiling an anonymous reporting policy.

The online tool will be called FPA Confidential which will be linked directly from both the FPA and “Good Advice” websites to ensure industry and consumer access. The policy for anonymous reporting embodies the principles, systems and actions required to ensure members and consumers can make anonymous reports about potential misconduct activities in our industry.

FPA CEO, Jo-Anne Bloch said the new anonymous reporting policy was developed in direct response to the collapse of Storm Financial and the need for vital information to allow the FPA to take action.

“Unfortunately, in the case of Storm Financial, the FPA did not receive any information from concerned consumers or members until it was too late,” Ms Bloch said.

“People who are unwilling to be identified tend to stay silent so the opportunity to offer a safe and independently managed reporting process will be welcome. Deloittes was selected as our independent outsourcing partner because of their capacity to provide a fully integrated system that meets the FPA’s needs. The site is independently managed by Deloittes forensic division to ensure anonymity but reporting is sent through to the FPA’s Professional Standards team. 

“This specialist online system will allow the FPA to obtain critical information relating to misconduct and potentially reduce the number of financial planners and licensees doing the wrong thing,” Ms Bloch said.

As a result of the collapse of Storm Financial, the FPA recognises that compliance programs are not sufficient in preventing misleading and unethical behaviour.

“Ticking the boxes doesn’t always work to address ethical practice,” Ms Bloch said.

“The FPA is committed to ensuring its members put their clients first, and by holding financial planners accountable through anonymous reporting, the FPA is helping to protect consumers and the reputation of financial planners doing the right thing.”

The full policy and FPA Confidential portal will be available on the FPA’s website shortly after the conference concludes: www.fpa.asn.au

For further information, refer to media contacts

Note to journalists

The Financial Planning Association of Australia (FPA) is the peak professional body for financial planning in Australia. The FPA has an office in each capital city and a network of 31 Chapters across the country, which provide a focus for business networking and professional development activities for more than 12,000 members. FPA practitioner members manage the financial affairs of more than 5 million Australians whose investments are valued at $630 billion.