In a statement released today, Senator Cormann said the ultimate register has been “informed” by the industry working group consultation meetings and will enable “investors, employers and ASIC to verify the credentials of financial advisers and be confident that they are appropriately qualified and experienced”.
Among a number of details, the register will include a controversial component: “details around ownership of the financial services licensee and disclosure of the ultimate parent company where applicable” as well as any “bans, disqualifications or enforceable undertakings”.
Other details include the adviser’s name, registration number, status, and experience;
qualifications and professional association memberships; and which product areas the adviser can provide advice on.
The register will be up and running by March 2015 and will cost around $5 million to set up, funded by a $5 increase, to $44, to the ASIC lodgement fee for licensees.
The announcement is in line with the draft recommendations of the industry working group, reported by ifa in August.
Hopefully, this outcome will result in transparency ongoing. Where in the past, Banks/Institutions, have been pushing product hiding behind branded dealer groups, acting always to the detriment of the consumer.
Having a register of financial advisers of this nature, will ensure independent financial planning services without conflicts of interest of the past.
The statement released by Senator Cormann needs to be quickly implemented and relied upon! It needs to cover such matters as detailed ownership of the financial services being offered. . Who is the actual licensee and principle/s involved!
Of course the register should include the adviser’s name, registration number, status and experience details. As proposed any bans, disqualifications or enforceable undertakings could be flagged and acted upon.
Senator Cormann said the ultimate register has been informed by the industry working group. How exciting !!!
Waste of public money . Consumer protection will be zero. Qualifications dont equal ethics. The reason financial markets melted down in 2008 was on the back of highly qualified people who held MBA’s etc ripping the system off .
Great move at last
Now this is an adviser register I can support. Not like this trip adviser ratings nonsense!
At least consumers will finally start to get some transparency. Institutions have been buying up distribution for years and hiding behind branded dealer groups. A positive move. Vertical integration can get stuffed.
Now that is settled what about also showing ultimate ownership on the front door and on any representations?
Be proud of your owners and not embarrassed by them.