1. 10 | Financial Planning www.financialplanningmagazine.com.au
Chairman
“We stand on the
shoulders of those
who came before us.”

2. Looking back at his seven years
on the FPA Board, Matthew
Rowe is justifiably proud of the
achievements the FPA has made,
most notably moving down the
path of professionalism by lifting
the educational and professional
standards of planners in Australia.
It’s been a tough gig for the FPA
chairman, who after seven years
on the Board with the past four
spent as chairman, relinquishes his
position on the Board at this year’s
AGM in November. But it has been
a gig that Matthew has embraced
with passion and enthusiasm that
some may say almost verges on
the fanatical.
Reflecting back over the past
seven years, Matthew says his
motivation to join the Board in
2007 was due to a strong belief
in giving something back to the
profession that he has received
so much from. He recalls some
sagely advice: “A very wise person
once told me that a professional is
a debtor to their profession.”
The last seven years have been a
tumultuous and evolutionary time
for the profession. But Matthew
sees the real change over that
period coming not from regulation
but through the positive difference
coming from within the profession
to the way in which planners want
to be seen.
“Financial planners are changing
the language of those in
management positions within
their organisations. The language
of sales, product and distribution
is going. Planners now speak of
value, advice, client and quality,”
Rowe says. “I have seen a growing
confidence in my colleagues that
our professional obligation over-
rides that of any management
short-term incentive. It is this
sense of professional obligation
to do the right thing that will drive
further change from within.”
Highlights
Matthew is quietly satisfied with
the achievements the FPA and
Board have been able to deliver
to members over his seven
year tenure, but when asked to
pick some highlights, his praise
quickly returns to the passion and
engagement shown by members,
FPA staff and the Board to steer
the industry towards becoming a
profession.
“It has been so important to have
a team that has passion for the
profession of financial planning,
which can only come from being
emotionally invested with our
cause. I am reminded time and
time again, that people who are
financially invested only expect
a return, but people who are
emotionally invested, seek to
contribute.
“We have clarity of purpose in the
FPA. This has enabled our Board
and leadership team to operate
well above industry politics and
self-interest that had at times
plagued our organisation. The only
faction in the FPA is the faction
of individual financial planning
professional practitioners and it is
a faction of over 10,000 strong.”
After seven years on the FPA Board, with the last
four as chairman, Matthew Rowe steps down in
November, but not before he reflects on just how
far the profession has come in that time.
Jayson Forrest reports.
October 2014 | 11
Continued on p12

3. Elaborating on the above point,
Matthew concedes that the
7 April 2011 vote to change the
FPA’s membership structure,
by removing the large Principal
category to become an individual
practitioner focused association,
was a definite highlight for him as
chair of the FPA.
With 94 per cent of practitioner
members voting in favour of
this change at an Extraordinary
General Meeting, it was a
defining moment for the FPA in its
journey to become a professional
association. It also provided the
Board with an overwhelming
mandate from members. “It was
the day,” says Matthew “that the
FPA was born as a professional
association in the true meaning.
“The vote meant we moved
on from being an industry
association representing the
commercial interests of a very
diverse membership, to become
a professional association acting
in the public interest on behalf
of individual financial planning
professional practitioners only.
“The vote enabled us to say very
clearly: this is who we are. ‘We’re
a professional body for individual
practitioners who act in the
public’s best interest.’ We never
had that clarity before. It gave
us clear messaging around our
purpose: what we want to do; why
we exist; and our values.
“It is something that took many
people almost 20 years to
achieve. As such, it is important to
recognise that in this endeavour,
we stand on the shoulders of
those who came before us.”
Matthew says it was really from
7 April 2011 that the organisation
and members came together,
because they were all lined up
behind a common purpose.
“Every single decision from that
point was based on: is this in the
public interest, and is this what
a professional body should be
doing. From there, we formed our
policy framework, so that now
we have four policy pillars when
we make any decision: public
interest, professional practitioner,
government and regulations, and
Code of Professional Practice. This
made decision-making easier and
quite transparent.”
Today, the FPA is financially
sustainable, with its operating
costs met by individual
membership revenue only. It is
not beholden to any third-party
or competing interests, which
Matthew is justifiably proud of.
FoFA
When it comes to FoFA, Matthew
is surprisingly pragmatic. He
agrees the reforms have been
challenging for some members,
but believes most practitioners
have been evolving their business
and advice models for some
years, towards implementing
the principles FoFA originally set
out around client best interest
and the removal of conflicted
remuneration.
But he is less accommodating
around the way the profession
was treated by government and
competing stakeholders.
“The real challenge was having our
profession treated like a political
football. There are a lot of very
good members of the FPA who do
the right thing each and every day.
They suffered a lot over four years
of FoFA implementation, but we
will be stronger for it. The scandals
that have plagued financial
planning have acted as a catalyst
for a lot of lids to be lifted on the
unacceptable, the conflicted and
low standards that are well past
their use by date.
“The Australian public have told
us they don’t accept RG146;
they don’t accept conflicted
remuneration; and they will not
tolerate it if we don’t act in their
best interest. They are telling us
they expect financial planners to
be someone who they can trust
and respect, because what we do
is of vital importance to them.”
10-Point Plan
Matthew is noticeably proud of
the FPA’s 10-Point Plan for the
future of the financial planning
profession. He sees it as an
important and pro-active initiative
by the FPA, which has already
garnered support from ASIC and
Government.
The major players in financial
services have adopted significant
elements of this plan for their
advisory networks. This is a
significant achievement for the
direction the FPA is taking the
profession, in preparing planners
for the next steps required for a
clear separation between product
and advice, and in delivering
professional autonomy for financial
planners.
“The FPA is the only body that has
put forward such a comprehensive
plan. There might be elements of
the plan that people disagree with,
or perhaps need to be refined,
but ultimately, leadership is about
making decisions and not simply
making noise for the sake of media
and profile. In this respect, the
FPA is certainly relevant. I measure
relevance through the change
produced for financial planning –
the outcomes delivered, and not
the noise made.”
Matthew is confident that the
FPA will look back in 12 months,
after the next PJC Inquiry, with
90 per cent of the 10-Point Plan
having been implemented. “Our
12 | Financial Planning www.financialplanningmagazine.com.au
“A very wise person once
told me that a professional is
a debtor to their profession.”
Chairman

4. plan will deliver good outcomes
for consumers and therefore, the
profession can only benefit.”
Standing for
what is right
However, in the fallout from the
CBA financial planning scandal
earlier this year, the FPA (and
Matthew personally) faced strong
criticism over its tough stance
over the issue, particularly its call
for a National Summit on financial
advice.
Matthew concedes that of his
entire professional career, this was
the most difficult time for him, both
personally and professionally. It
was a lonely time for the chair of
the FPA.
“This was an issue playing out
relentlessly in the national media,
day-after-day, and there appeared
to be no circuit breaker. The
scandal had reached out beyond
the industry into the lounge rooms
of ordinary Australians to become
the topic of conversation at family
barbeques. The scandal became a
character test for financial planning
and like all character tests, much
is revealed through the choices
people make.
“With the benefit of hindsight,
could I have done some things
differently – yes, of course – but
saying this, we made a choice
that we would not defend the
indefensible. We made a choice
to set policy positions that serve
the public interest. We made a
choice to put ourselves and our
professional body in harm’s way to
stand with Australians for a better
financial future,” he says.
“As always, history will cool
emotions allowing people to calmly
judge actions taken and outcomes
will be clinically assessed with
the benefit of hindsight. We only
have to look at the impact our
actions are now having on lifting
educational standards amongst
our major institutions to gain an
insight as to how history may judge
whether the ugliness was worth
fighting through.”
And considering this was the
loneliest time of his professional
career, would he do it all over
again? “Absolutely,” he says. “It
was the right thing to do.”
Board
With the FPA Board elections
coming up in November, Matthew
has some final advice for any
members considering nominating.
“Leave any political or commercial
agenda you may have behind. No
matter what platform you think you
are elected on, the FPA’s purpose
is to stand with Australians for a
better financial future. If you don’t
get this ideal, then you should
expect your behaviour to be called
upon very quickly and repeatedly
by your Board colleagues.
“Undertake the Australian Institute
of Company Directors (AICD)
program, because being a good
practitioner doesn’t necessarily
mean you have the skills to be
a strong contributor as a Board
Director – understand that you are
there to govern not manage.
“Most importantly, serve time
within a Chapter or Committee,
get to know the organisation,
understand our culture, become
informed and make a contribution
at a grass roots level. This grass
roots contribution will hold you
in good stead amongst the
approximately 900 colleagues
you will need to vote for you. It will
also show your potential Board
colleagues that you earned your
seat with them, having done the
same hard yards they have.”
The future
So, what is the future looking like
for the FPA and the profession?
Matthew pauses. “It’s a great
question.”
He looks towards a future post
the recent Senate inquiries into
FoFA and ASIC, and the PJC
inquiry into Standards, Education
and Ethics.
“Firstly, I firmly believe that in the
not too distant future, you will only
be able to call yourself a financial
planner if you are a member of an
approved professional body. The
term financial planner/adviser will
become restricted in law and it
will be linked to membership of a
professional body.
“Secondly, RG146 will be
completely revamped. You
will now need an approved
degree as a minimum entry
requirement into our profession
and you will be required to hold
membership of an approved
professional body.
“Thirdly, there will be a national
register – available to the public
– of all financial planners giving
Tier 1 advice to retail clients. It
will detail your education, work
history, professional membership
and standing, your licensee and
ownership. It will help us track
and remove the bad apples. It will
help consumers verify the good
planners and help us get rid of the
spruikers.
“And fourthly, the public will look
for Certified Financial Planner®
practitioners as the trust mark in
planning. We know that 94 per
cent of consumers looking for
a financial planner would rather
seek out the services of a CFP
over a non CFP.”
Legacy
When asked to talk about his
legacy as chairman of the FPA,
Matthew is characteristically
uncomfortable. It’s not a subject
he enjoys addressing.
“Let members and the profession
judge me for what I’ve done,” he
says.
“No one really understands what
it’s like to be the chair of the FPA
unless you have actually done
the job – it’s unrelenting. I think
every chair that the FPA has had
over our 20-year history has left
the organisation in better shape
than they found it. To me, this is
the mark of success. I believe I
have continued in the tradition
of our chairs and have left the
organisation in some way better
for being there.
“The team at the FPA has
achieved more than I ever thought
possible when I first joined the
Board seven years ago. It’s been
a remarkable journey.”
So, does that mean he has
achieved all that he has set out
to do?
“I think so,” he says. “There is
nothing left on my ‘to do’ list,
other than to thank the members
and supporters who take time
away from their professional
efforts and families to make
their own contribution to our
professional community. Whether
they are Board members, Chapter
Chairs, Committee members or
volunteers for Future2, they serve
to form part of our professional
community; they contribute
to something more than
themselves.”
As a parting comment, Matthew
is keen to end this interview the
same way he began it.
“I took on the role as chairman to
make a positive difference, and I
believe in some ways, I have made
a positive difference,” he says.
“I do know one thing though, I am
very proud to call myself a Certified
Financial Planner®
practitioner and
an FPA member, and I am part
of a professional community that
stands with Australians for a better
financial future.”
October 2014 | 13