Financial planners are being urged not to engage in a turf war with accountants who provide financial advice, in favour of creating partnerships in order to thrive in a post-FoFA world.
Recent Freedom of Financial Advice (FoFA) provisions will allow accountants greater freedom to give limited financial advice, measures that threaten the stranglehold planners have over advice.
However, CPA CEO Alex Malley said a turf between the professions would be misguided, and has assured planners that CPA's were not looking to step onto planner turf.
“The vast majority of our members do not wish to provide product advice and want to establish professional referral networks to other trusted advisers,” Malley said.
He did concede the FoFA provisions has led to some jostling for the advice space from a number of different sectors, but urged warring parties not to lose sight of what is best for the consumer.
Malley believes that the best way to service clients is for increasingly financially literate accountants to form relationships with financial advisers, rather than seeing them as enemies.
“If we have an agreement to disagree on some fronts, but overridingly a healthy respect for collaboration, we have a much better chance of being strategic as a sector,” he said.
He added that 'small territorial issues' would most likely be resolved by market forces.
Malley urged the two factions to start focusing on the opportunities for collaboration sooner rather than later in preparation for doing business in a post-FoFA environment.