FSC wants to work with advisers

The Financial Services Council has a clear strategy to connect with advisers, its chairman says.

Friday, October 21st 2016, 6:00AM

by Susan Edmunds

Rob Flanagan

It was revealed yesterday that former Sovereign distribution boss Richard Klipin had been hired as the chief executive of the organisation.

He takes over from Owen Gill, who was performing a dual role as chief executive of both FSC and Workplace Savings NZ.

Klipin has a strong history of connection with advisers – he was chief executive of Australia’s Association of Financial Advisers for six years.

FSC chairman Rob Flannagan said there was not expected to be a change of direction for the FSC under Klipin’s leadership.

It struck turmoil when it released a report by Melville Jessup Weaver, which was critical of insurance adviser commissions. That upset some of its insurer members who use the third-party distribution channel.

Flannagan said Klipin’s appointment was intended to be a long-term one, to continue a strategy that had already begun.

He said it was important for the FSC to connect with the adviser community, and the organisation had been talking to the PAA and IFA about their work on Financial Advice New Zealand. “We want to work closely with them as they want to work closely with us.”

He said it was important the financial services sector had a strong voice and started pulling together and talking as one.

There had been suggestions that Gill’s appointment was the start of a merger between Workplace Savings and FSC.

Flannagan said that discussion was continuing. He said the FSC’s constitution allowed it to have colleges and it was intended that Workplace Savings could operate in that way.

“It would be under the umbrella of the FSC, operating with the code we are trying to put in place,” Flannagan said.

Tags: FSC