ASIC would recommend further changes in policy to improve the professional standards of advisers but believes the advice sector should drive further change, according to ASIC Chair, James Shipton.
Speaking at the opening of the two-day ASIC Annual Forum in Sydney this week, Shipton said the financial services sector needed to rebuild its trustworthiness and part of achieving this was lifting the levels of professionalism across the sector.
Shipton added, “…we need to recognise that it will need whole and undivided commitment across the entire financial ecosystem to address this challenge. Industry, and the people within it, need to do more and need to take more of a leadership role.”
He said that ASIC had supported an increase in the level of professionalism among financial advisers as well as the development of FASEA, and was continuing to support the advice sector in its transition to higher education and ethical standards.
“…we supported a policy tool as the catalyst. And we are prepared, if necessary, to pursue this approach again…”
“In that particular case, we supported a policy tool as the catalyst. And we are prepared, if necessary, to pursue this approach again. However, that isn’t the only way,” Shipton said.
“Another way is for the industry itself, working with standard setting and professional bodies, to promote and perhaps even require, professionalism within their sectors,” he continued, adding, “In other words, there is a window of opportunity for the industry to take the lead without the imposition of a regulatory catalyst.”
The Minister for Revenue and Financial Services, Kelly O’Dwyer, speaking at the Forum before Shipton, made similar statements calling on all advisers to rebuild trust but also claiming the reason for the reforms was due to past failures in the advice sector.
“It is important to remember why these reforms are necessary – repeated instances of inappropriate or just plain bad advice has significantly eroded trust and confidence in the financial advice sector,” O’Dwyer said.
“Every adviser has a role to play in rebuilding that trust, and these new educational requirements are a critical step towards professionalising the sector,” she added”
“Ultimately, the professionalization of the advice sector will be in the best interests of all advisers, existing and new, because it will ensure enduring consumer trust and confidence in the financial advice sector.
Has Kelly O’Dwyer ever spoken to a Financial Adviser – I think not likely. Nick Xenophon had the deciding vote on FOFA reforms in November 2014 and openly admitted he had never in his life spoken to a Financial Adviser and after the vote commented if he had known what he knew after from speaking to advisers would not have voted in favour of the reforms. He made the comment “You have not been represented very well by your industry”. Lets stop trying to regulate everything (you cant have laws to enforce moral conduct). Its time a proper industry body was created to supervise our industry in a similar manner to the Law Society or the AMA. Then we can drive change within our industry and set standards of conduct mandatory for membership, rather than being at the mercy of the existing organisations that are more concerned about their own existence than our future or consumers interests. Kelly or James if you would like to talk about how advisers can drive change from within our industry I am available any time.
Gee, aren’t we lucky that none of our politicians ever act unethically?
From looking at our newspaper headlines here in Victoria today, I cannot help but wonder now what the education standards are (or were for our State Government Ministers prior to them rorting tax payer funds for their own gain in the 2014 State Election) or what they are for our Federal Government Ministers.
How absolutely hypocritical they are when it comes to imposing ethical standards. What a joke!
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