PM Singles Out ‘Four Day’ Advisers

The Prime Minister Malcolm Turnbull has praised the financial services sector for providing economic security but stated efforts to reform the advice sector were aimed at those who became advisers in ‘four days’.

Speaking at a Financial Services Council breakfast in Sydney on 14 December, Turnbull said financial services sector was the largest industry in the Australian economy and accounts for around 10 per cent of the economy.

“It is hard to overstate how important a strong, dependable, trusted financial sector is for our country. My Government is keenly aware of what you contribute and what you stand to gain in this time of rapid change,” Turnbull said.

Outlining the Government’s reform agenda, Turnbull said reform in the advice sector was aimed at remuneration and professional standards and repeated claims, first made by Minister for Financial Services and Revenue, Kelly O’Dwyer, that some adviser had gained entry into the sector with less than a week’s training.

“These new requirements replace a system that has allowed some financial advisers—with only four days of training—to provide advice to retail consumers,” Turnbull said.

“It will mean much more stringent training and supervision, so that consumers can have confidence in the industry and confidence that the advisers they speak with are ethical and qualified and are putting their interests first,” he added.

The speech which covered superannuation reforms, adviser professional standards, funding for ASIC, the review of external dispute resolution schemes and the exporting of financial services expertise did not mention the Life Insurance Framework legislation currently before Parliament.