The Association of Financial Advisers (AFA) has called on the Federal Treasury to restrict and regulate use of the term ‘financial adviser’.
Responding to recent negative stories appearing in the electronic and print media about the conduct of financial advisers, AFA CEO, Richard Klipin, said there is currently a lack of understanding about what the term ‘financial adviser’ actually means and believes the term should be regulated by the Australian Securities and Investments Commission:
“There should be transparency around the term and anyone using it should be subject to the same scrutiny and have to adhere to the same regulatory requirements as financial advisers,” said Mr Klipin, who added “Those who can’t have not earned the right to call themselves advisers.”
The Association’s stance on restricting the use of the term ‘financial adviser’ comes as it calls for an end to ‘open season’ on advisers.
…some sectors of the media are holding the adviser community as a whole accountable for the sins of the very few…
AFA President, Jim Taggart, said some sectors of the media are holding the adviser community as a whole accountable for the sins of the very few and in the process are wilfully ignoring the vast majority of advisers who do the right thing.
According to Mt Taggart, the present spate of negative publicity surrounding financial advisers and the advice they provide “…is trial by media and policy development by media and, in the interest of ensuring the consumer’s financial needs continue to be professionally addressed, it must now stop.”
“Consumers need the help of a financial adviser in order to achieve their financial goals and objectives,” said Mr Taggart. “The current open season on advisers does nothing to encourage consumers to get that help. It is not constructive to building, managing and protecting wealth – in fact, it is counter-productive.”
