The association said its decision to overtly align its activities with the public interest in 2010 has now been validated by the Senate Economics References Committee Inquiry into ASIC’s handling of Commonwealth Financial Planning.
The FPA believes the inquiry report underscores the need for an “efficient co-regulatory model with approved professional bodies handed greater powers of monitoring and supervision of all financial planners/advisers”.
FPA chief executive Mark Rantall said he was pleased the inquiry has included all of the FPA’s recommendations within its 10-point plan in the final report.
“The FPA is committed to stamping out inappropriate advice outcomes rooted in complex product distribution and conflicted remuneration practices, while offering viable solutions based on what is right about appropriate financial planning,” he said.
He also welcomed the committee’s recommendation to have the term Financial Planner/Adviser protected in law.
Mr Rantall said it is now “high time to investigate and deliver the pre-requisites for all Australians to renew confidence in their dealings with anyone who uses the term ‘financial planner’ or ‘financial adviser’”.
in order to raise the standards of the industry and better protect consumers, macro regulatory change is needed to
distinguish between:
Planner v Advisor – these are distinctly different competencies
Product Seller (“tied agent”) v Independent Advisor – entirely different commercial & ethical interests
Nick Brookes
Director
SISFA