The Government has released a consultation paper, calling for submissions on ways to lift the professional standards of financial advisers.
Following the release of the Parliamentary Joint Committee’s report into proposals to lift the professional standards of financial advisers, Assistant Treasurer, Josh Frydenberg, has announced the Government will seek further input from the industry, before responding to the report.
To facilitate this input, Mr Frydenberg has released a consultation paper based on the recommendations of the PJC report. Specifically, the consultation paper is seeking feedback on the core elements of the PJC’s proposed co-regulatory model, which calls for:
- Minimum degree-level qualifications for advisers
- The Introduction of a structured ‘professional year’ for all advisers
- A new standard setting body – the Finance Professionals Education Council (FPEC)
- Mandatory membership of professional associations, as approved by the Professional Standards Council
- A registration exam
- Ongoing professional development requirements
“With the right model, improvements in the qualifications, competence and ethics of the financial advice industry will be a win-win,” said Mr Frydenberg.
“Industry will benefit from improved consumer confidence and from becoming a recognised profession. Consumers will benefit from increased transparency, accountability and adviser competence.”
The closing date for submissions is 7 May 2015. Further consultation will then be undertaken until June 2015. Click here to view the consultation paper.
None of these requirements are really an issue if they are combined with legislative compliance relief. The current framework was built for disclosure conflict. If we’re going to remove the conflicts and lift standards then do away with the horrendous amounts of time wasting and cost inflating compliance. I didn’t get an SOA from my lawyer when they did my will and I don’t get an SOA every time I call my accountant.
Last time I checked, my doctor didn’t issue me with an SOA for medication either. Yet we currently put individuals in JAIL if they don’t write down what they recommend in a complex, long and terrible document.
Remove the conflicts, remove the costs, improve standards, improve outcomes.
Comments are closed.