The Financial Planning Association of Australia (FPA) and the Association of Financial Advisers (AFA) have joined forces in an effort to highlight issues of common interest and concern in the debate over regulatory reform in the financial services industry.
This joint approach from the two key adviser Associations in the country follows their respective submissions to the Parliamentary Joint Committee Inquiry into Financial Products and Services, where there were a number of similar or common recommendations, such as:
- The need to clarify the role of financial planners and advisers
- The need for compulsory membership of a professional body
- The need for reform of retail client compensation
- The need to lift entry levels for becoming a financial planner/adviser
The CEOs of their respective Associations, the FPA’s Jo-Anne Bloch and the AFA’s Richard Klipin, agree that ‘…measured reform is required to ensure the ongoing viability of the financial advice profession.’
A common message coming from the Associations is that the financial services industry would best be served by changes to existing regulations rather than having new regulations imposed:
“Australia’s financial services industry is already governed by some of the best regulation in the world,” said Mr Klipin. “The AFA and the FPA would like to see improvements to the existing regulation to further protect consumers and boost education and training requirements for financial advisers.”
Another strong, common message from the Associations centres on the use of the term ‘financial adviser’, with both Ms Bloch and Mr Klipin agreeing in their joint statement that there is a lack of differentiation between the terms ‘financial product adviser’ and ‘financial planner/adviser’.
Both Associations would like to see tougher regulation around who can call themselves financial planners…
Both Associations would like to see tougher regulation around who can call themselves financial planners or financial advisers. Both agree these terms are currently used too loosely, causing confusion among consumers.
The FPA and AFA also agree that while membership of professional bodies is currently voluntary, all who offer professional financial advice should be required to join a professional body as long as that body meets appropriate guidelines.
Each Associations’ submissions to the Parliamentary Joint Committee Inquiry into Financial Products and Services can be accessed below:
AFA Submission to Parliamentary Joint Committee Inquiry into Financial Products and Services
FPA Submission to Parliamentary Joint Committee Inquiry into Financial Products and Services
