The education and professional standards body within the Federal Government’s proposed professional standards legislation for advisers needs to have adviser and educationalist representatives who are highly credentialed in the provision of advice and adviser training, according to one training provider.
Mentor Education, Managing Director, Mark Sinclair said the proposed legislation was a once in a generation opportunity to put in place the highest standards of quality of advice and professionalism.
However, he said the professional standards body (PSB) should be ‘de-risked’ from becoming a special interest group, developing mission creep or overlapping with the role of the Australian Securities and Investment Commission (ASIC) through strict and limited terms of reference and the appointment of advice and education experts.
“The Minister also needs to ensure that the three financial planners who become PSB directors are highly respected by their peers and have experience that reflects the full diversity of advice that a comprehensive financial planner may provide. That would go a long way to ensuring that the deliberations of the body translate into concrete and effective educational outcome,” Sinclair said.
“The PSB could be also be de-risked by ensuring that the appointed educationalist has strong and relevant expertise in the design of tertiary degrees and training, to ensure that each of the 24-subjects in a Bachelor of Financial Planning Degree cover the education requirements needed by the adviser of the future.”
His comments follow the release of the second draft of legislation covering the education and ethical standards of advisers in which the representation in the PSB went from seven to nine people, including an educationalist and extra consumer advocate with Sinclair describing this as a good step if all nine people are highly credentialed representatives.
“The Government’s proposed education and ethical standards body for financial advisers must be designed well to ensure adviser education and consumers come first”, Sinclair said.
“The body must define robust and transparent academic and ethical requirements to provide consumers with confidence and improved trust in their advisers, thereby taking the sector to a higher level of professionalism.”
