One of Australia's leading superannuation Funds has praised efforts by the Financial Planners' Association (FPA) to improve planner fee transparency.

Tasplan General Manager, Neil Cassidy praised the FPA for taking the first step toward removing questionable practices in an industry which in the past has been rife with undisclosed commissions and fee discounting linked to use of particular investment products.

"The FPA is the professional association for financial planners around the country" Cassidy said, "It is entirely appropriate for it to set standards for its members in much the same way as accounting and other professional organisations do."

"I know that industry superannuation funds like Tasplan have taken a swipe at some financial planners in the past for lack of fee disclosure and secret deals with investment managers, but any move by the FPA to push fee transparency to higher levels is to be welcomed."

In a bid to improve planner fee transparency and give consumers more control over charges and commissions, the FPA has launched a set of principles to be observed by its members.

Under the principles, planners must identify their advice fee separately in their statement of advice and disclose total fees for ongoing advice on a regular basis.

It is proposed that sanctions such as fines and expulsion will apply where planners are offered commissions or fee discounts for selling a certain amount of a fund manager's product.

Cassidy said the reforms were long overdue and that any undisclosed benefit paid to a financial planner arising from their dealings with clients is a conflict and must be banned.

Cassidy said he was disappointed that the FPA had not set a closer deadline for commencement of its new principles which must be adopted by members by 1 January 2007 with there being no requirement to provide regular fee advice to clients until the same time in 2008.