Statistics from the FPA Confidential whistle-blowing service found that of a total of 61 anonymously received incident reports, the FPA Professional Standards team “successfully resolved 90 per cent.”
“The story behind these numbers is of a professional system operating to self-govern against perceived or actual misdemeanour,” FPA chief executive Mark Rantall said.
“It points us to the timely conclusion that we must now embed a relevant, consumer-centric professional framework in Australia that separates industry from profession and product sales from advice.”
Of the 10 per cent of unresolved incidents received through the service, the FPA said they were either ongoing matters, were subject to active inquiry, or being monitored.
Mr Rantall said the results are evidence that a co-regulatory system will help list financial planning into a profession.
“Firstly, the recent call to lift educational standards, appropriately phased in, is a sensible and enduring approach and FPA supports this principle without question,” Mr Rantall said.
“We have long argued for the raising of standards and we stand beside every Australian in this concern.”
“Secondly, new data from the FPA’s whistleblower service shows how effective a professional co-regulatory system can work when enforcement of higher ethical and professional standards may be called for.”
The FPA Confidential service was introduced in February 2010 and is run by Deloitte to “safeguard the reputation of the financial planning profession.”
It allows individuals to report suspected misconduct through an online independent service run by Deloitte.
