{"id":33031,"date":"2016-04-19T12:05:29","date_gmt":"2016-04-19T01:05:29","guid":{"rendered":"https:\/\/riskinfo.com.au\/news\/?p=33031"},"modified":"2016-04-20T08:39:16","modified_gmt":"2016-04-19T21:39:16","slug":"royal-commission-overlooks-extensive-reviews-of-advice","status":"publish","type":"post","link":"https:\/\/riskinfo.com.au\/news\/2016\/04\/19\/royal-commission-overlooks-extensive-reviews-of-advice\/","title":{"rendered":"Royal Commission Overlooks Extensive Reviews of Advice"},"content":{"rendered":"

A review of financial advice as part of a Royal Commission would be a waste of money and overlooks the numerous reviews into the sector as well as major legislative changes according to the Financial Planning Association (FPA) and the Association of Financial Advisers (AFA).<\/p>\n

\"FPA<\/a>
FPA CEO,\u00a0Dante De Gori<\/figcaption><\/figure>\n

FPA Chief Executive, Dante De Gori<\/strong> stated that since the handing down of the Ripoll Report in 2009 there have been 54 inquiries, reviews and consultations related to financial planning<\/a> which has in turn led to the introduction of five major pieces of legislation.<\/p>\n

These include the Future of Financial Advice (FoFA), Tax Agent Services Act (TASA), the Financial Advice Register (FAR) operated by the Australian Securities and Investments Commission the pending Life Insurance Framework and Professional Standards and Education legislation.<\/p>\n

De Gori pointed out that FoFA\u2019s key principle was greater consumer protection and the advice sector had been working over the past five years to achieve better consumer outcomes.<\/p>\n

He also stated that conflicted remuneration had been banned, all financial advisers were subject to best interest duties, were required to be listed on the FAR, and were to be personally registered, or supervised by, a registered individual with the Tax Practitioners Board (TPB).<\/p>\n

\u201cWhat we need to do now is focus on what has already been achieved and move forward with workable legislation that we have in place.”<\/h6>\n

\u201cMany of these measures are less than three years old and are still in implementation phase. It is important that we allow time for the full impact of these changes to be felt,\u201d De Gori said.<\/p>\n

\u201cWe have come a long way in setting strong foundations for a financial planning profession that will truly serve and protect the interests of Australian consumers in the next decade and beyond. Not only would a Royal Commission put this on hold, but it would also mean that millions of tax payers\u2019 dollars would be wasted,\u201d said Mr De Gori.<\/p>\n

\u201cWhat we need to do now is focus on what has already been achieved and move forward with workable legislation that we have in place. Only then will we be in a position to evaluate the success of these significant measures.\u201d<\/p>\n

\"AFA<\/a>
AFA CEO, Brad Fox<\/figcaption><\/figure>\n

His comments are similar to those of AFA Chief Executive, Brad Fox<\/strong> who stated during a media briefing late last week that any funds spent on a Royal Commission would be better used enforcing the current regulations.<\/p>\n

\u201cThe money would be better spent on providing ASIC with greater resources to police the more than adequate rules we already have in place,\u201d Fox said.<\/p>\n

\u201cWe have the most stringent financial advice rules in the world. We have a robust financial services system, it is not perfect, but let us spend the money making sure that we are using the rules in place. It is not the rules that are broken, it is individual cases of conduct that should be improved.\u201d<\/p>\n

“…let us spend the money making sure that we are using the rules in place. It is not the rules that are broken…”<\/h6>\n

Fox stated that with the numerous reviews and inquiries the financial advice sector was well aware of what the issues where and needed to address<\/p>\n

\u201cI think we can be pretty confident that we are all aware of where the issues lie. Let\u2019s concentrate on what we can do to remedy them,\u201d Fox said.<\/p>\n

\u201cThere is considerable work going on at the moment to look at how ethics is taught and trained for financial advisers, I think we will see leadership positions develop – we are calling for it – where we see people in management and services to financial advisers needing to do the same study and be on the same understanding of ethics.\u201d<\/p>\n

\u201cI think we need to concentrate on that, inherently, most people are good but they make bad choices occasionally and that is the area where driving culture can help them make better choices,\u201d Fox added.<\/p>\n","protected":false},"excerpt":{"rendered":"

A review of financial advice as part of a Royal Commission would be a waste of money and overlooks the numerous reviews into the sector as well as major legislative changes according to the Financial Planning Association (FPA) and the Association of Financial Advisers (AFA).<\/p>\n","protected":false},"author":3,"featured_media":33068,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[282,8],"tags":[4247],"class_list":{"0":"post-33031","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-associations","8":"category-compliance-regulation","9":"tag-feature"},"_links":{"self":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/33031","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/comments?post=33031"}],"version-history":[{"count":0,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/33031\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/media\/33068"}],"wp:attachment":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/media?parent=33031"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/categories?post=33031"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/tags?post=33031"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}