The royal commission made the submissions it received in response to its financial advice hearings publicly available on Thursday.
In its response to the royal commission’s financial advice hearings, the Finance Sector Union (FSU) said the current regulatory environment was not adequate, and that professional associations’ disciplinary measures are not adequate.
“The various membership-based professional associations appear more focused on member recruitment (including as between each other) and servicing, than the disciplining of the members,” the submission said.
“The employer’s response, the various conduct background check protocols are inappropriate and unsustainable – it provides no meaningful protection for consumers (who have no access to the information), and in failing to provide any procedural fairness to those adversely named, will inevitably be subject to legal challenge.”
The FSU added that “there are similar gaps” related to professional standards credentials, vertical integration and accountability for AFSL holders and their senior managers, and that regulation of financial services should be reformed to provide better disciplinary measures while factoring in the culture created by business’ managers.
“The regulation should also impose obligations on licensees, manufacturers of financial services and platform providers. At a high level such obligations should ensure that they take all reasonable steps to ensure that financial advice services and products offered to customers are in the customer’s best interest,” the submission said.
A full list of the submissions made to the royal commission can be read here: https://www.ifa.com.au/news/25505-royal-commission-round-two-responses-released
Aha, this is a union talking about standards and discipline for doing the wrong thing? The ones the their RC in 2015 labelled thieves bullies and perjurers amongst other things? Too funny, surely they’re taking the p*ss? If not, then I am confused, are they meaning giving those miscreants a well done smiley badge, or a good old fashioned broken limb or knee cap? Hypocrites!
Question for the FSU-in that well publicized recent case in Wagga, where a CBA adviser went feral and defrauded clients, what did the ]FSU do to the immediate 3 management levels above the adviser. Protect them? Ensure they kept the bonuses attributable to the dud adviser.?
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The FPA should be scraped. The CFP licensing trademarked should be removed. I’d like to see a new association started one that acts professional and sets a culture of professionalism from the top. Not the current organization that is living in the 1980’s.
The starting point would be to discipline the actions of the FPA and AFA and the trade unions themselves, not the members of them.
Criticism from a trade union? That is a badge of honour