Government Will Consult on Adviser Education

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The Government will consult with all industry stakeholders before making any policy decisions in relation to adviser education and professional standards, Assistant Treasurer Josh Frydenberg has advised.

Assistant Treasurer, Josh Frydenberg
Assistant Treasurer, Josh Frydenberg

Mr Frydenberg responded to the Parliamentary Joint Committee on Corporations and Financial Services (PJC) report into proposals to lift the standards of the advice industry, which was officially tabled in Parliament this month, by saying the Government would look carefully at the recommendations and implementation plan.

Among the recommendations contained in the report is a call to implement a co-regulatory model in which Government, professional associations, industry and academia all work in partnership.

Mr Frydenberg said it was now time to capitalise on positive industry momentum and put in place “…an enduring framework to improve the qualifications and competence of financial advisers, and to enhance the financial advice industry’s professional standards and ethics”.

While consultation will continue until the end of June 2015, Mr Frydenberg said some of the PJC’s recommendations would be considered as part of the Government’s response to the Financial System Inquiry, which closes for consultation on 31 March 2015.

Speaking about the report when it was tabled in the Senate, Nationals Senator John Williams said the Committee had received “frightening evidence” about how little study was required to achieve the minimum advice standard (RG 146).

The message to take away is in essence a road map to redress the wrongs of the past

“It is vital that this Parliament, including the other house, change these regulations. It is a bit like a surgeon who does a crash course on the internet or an eight-day crash course being qualified to perform operations on a human. That would be totally unacceptable. In this case, we looked at the savings of Australians to see that they get proper financial advice and see that the advice is in their interest first and foremost,” Senator Williams said.

Labor Senator, Deborah O’Neill, also spoke on the report, adding it was important to note that it had bipartisan support.

“I believe there is a positive message to take from the report’s recommendations, which, as deputy chair of the committee, I wholeheartedly support,” Senator O’Neill said. “The message is one of opportunity to secure the financial future of investors, for the mums and dads, and restore integrity to the vast majority of the sector that acts responsibly. The message to take away is in essence a road map to redress the wrongs of the past and to establish a new professionalism in this burgeoning sector.”

A summary of the report and its recommendations will be included in the upcoming March edition of riskinfo eMagazine.