Speaking at the commission’s first public hearing, Ms Orr said that while home loans will be the first area to be scrutinised by the commission, financial planning and wealth management will also be an “area of early focus.”
“Australians engage financial advisers to improve their financial position, to achieve their aspirations, and to plan for their future,” Ms Orr said.
“Clients repose trust and confidence in their financial adviser, it is important their trust and confidence is well placed.”
Ms Orr cited figures published in the 2009 parliamentary joint committee report on corporations and financial services to highlight the scope of the advice sector.
“At the time of the 2009 report, there were approximately 18,000 financial advisers in Australia, close to 8,000 financial planning practices, and around 160 dealer groups operating in Australia,” she said.
“As these figures reveal, the financial planning and wealth management industry is large and complex.”
According to Ms Orr, the commissioner – High Court Justice Kenneth Hayne – will release a document in the next few months that will update these figures, and subsequently “indicate the areas of particular inquiry” regarding financial advice at “a later point”.
Ms Orr also noted that financial advice dealings accounted for 9 per cent of the submissions received by the royal commission thus far, compared with 31 per cent for personal finance, 17 per cent for superannuation and 12 per cent for mortgage broking.
The contrast between financial advice and mortgage broking-related submissions comes less than a week after Peter White, executive director of mortgage broking industry association FBAA, said advisers were responsible for “a majority of issues” between the two industries.
So right up to date 2009 report being used against an industry – 9 years out of date
I thought the terms of reference was to exclude things that had been through previous or current inquires. So why focus all over again on advisers that have had a million reforms and red tape thrown at them? Its a Smoke screen. Why don’t you do what you’re meant to do and focus on those naughty bank executives that cause all the problems. Another stitch up.
Will real estate agents and property spruikers also be included in this RC given the roles they perform as part of the financial advice industry?
Indeed . . . and will ASIC and others cry out for a seperate licence under strict new rules for these people? AGAIN, where is our risk specific licence for riskies?! It is a different skill set and discipline to investment planning, real estate etc. Where are the life company execs that should be supporting advisers in this – THEIR advisers. [b]FAIL life companies[/b] – [i]BIG FAIL[/i]. Poor support for the advisers whom you SAY you’re committed to “passionately”! Makes me sick each time I hear life companies parrot their “commitment” to advisers because it does NOT exist. Look at the evidence. Simple to see.