When a Financial Management Advisor is paid to advise a client on how to save, invest or save for retirement, that can have a serious impact on the adviser’s compensation.
The Financial Management Guide Association (FMGA) says its members will not stand for this and its members say the FMGA has failed to uphold its fiduciary duties.
“It’s a breach of fiduciaries duty, it’s a serious breach of trust, it violates a number of the rules,” Financial Management Services Association (FMSA) director, Michael Burdett said.
Mr Burdett said he was unaware of any complaints of financial advisers doing the wrong thing.
FMSAs chief executive officer, Scott Gulland, said it was a matter for the industry and that the FMGs chief executives were in touch with Mr Burdets concerns.
“The FMGA is in touch and we’re continuing to work with them,” Mr Gullands spokesman said.
“We’ll be doing a bit of a follow-up, and we’ll make sure that any complaints that come up we’re aware of and we are working with them to make sure it doesn’t happen again.”
Mr Gullanders boss of the FMGAs annual convention, Mr Golland said it would be up to the industry to set a standard for the advice they provide.
He said he hoped FMGAA members would support the FMAs work.
”If you want to have a conversation about it, let’s talk about it and I’m really confident that the industry will listen and move forward in this regard,” Mr Boddett said