The Shadow Minister for Financial Services has called on the Australian financial advice industry to step up during an appearance on a special Momentum Media podcast.
On the episode, Stuart Robert addressed the sector when asked what he would like to see in the financial services industry moving forward, saying “the second thing I’d like to see is a whole lot more cooperation”.
“Government shouldn’t have to impose education requirements on the financial services industry on advisers,” Mr Robert said.
“Why doesn’t the AFA and the FPA and others all get together and agree? Agree on what the standard education should be and own that from a self-regulatory space. That would be superb if that advising space really stepped up.
“There’s still a lot of divisions and a lot of different organisations there.”
Mr Robert’s comments echoed a sentiment made by the Association of Independently Owned Financial Professionals (AIOFP) executive director, Peter Johnston, earlier this year, who slammed the “ridiculous” number of associations in the industry.
“There’s 13 associations, it is ridiculous. Now, if you compare that to the mortgage brokering industry, there’s two. They both got on and they got it fixed,” Mr Johnston told ifa in June.
“Canberra sits back and says, ‘[the advice industry] are just a rabble.’”
On the same episode, Mr Robert also claimed the industry has failed to correctly address education standards for some time.
“So I’ve been doing this journey for a long time and the industry — the advice industry — couldn’t get itself together on education. Couldn’t agree,” he said.
“Hence, why FASEA was born. Now, FASEA is gone, thank goodness. Because where it landed, I thought was quite poor.
“I’d like to see industry own its own education requirements, come together like the broking industry did, where the players all got together and all agreed.”
To listen to the full podcast with Mr Robert, click here.
Meanwhile, the AIOFP said it “supports abandonment” of the financial adviser exam in its submission to Treasury on the consultation paper for adviser education standards released last week.
In its submission, the AIOFP said there is “no public benefit in maintaining such a contentious exam”.
“Given the loss of advisers and the current requirements for professional technical and ethical education, the imperative to continue with such a national exam no longer exists,” the AIOFP submission reads.
“Consumers are now better served by a cohort of professional advisers who actively subscribe to minimum competency standards and ethical behaviours.”
Whilst there is obviously diversity in what mortgage brokers do, primarily it is the same task. However with Financial Advice there are numerous different avenues to follow and multiple specialties. Obviously 13 Associations is too many, however comparing Advice to Mortgage Broking is just plain dumb.
Yeh yeh Stuart it’s always Advisers fault.
And it’s never politicians fault is it.
Let’s see this bloke squirm on the stand for the RC into Robo Debt, what a wonderful Govt scheme that was hey Stuart.
“Ah yes RC, Robo Debt was a tad unfortunate but it was the Centrelink recipients fault, they caused all the problems by not having smooth fortnightly income. It’s certainly not Govt or my fault that the Robots used average income to crucify these people, when it turns out now that Centrelink use a different calculation
– Recipients fault Mostly.
– and yeh Robots fault a little.
– but no RC nothing I did was wrong :-)”
He is a total joke, he tried to destroy our industry and now he wants to be the knight in shining armour.
Say all you want because you don’t like the guy but what he says is an element of truth. How is there some 180,000 Accountants and we have three main Accounting bodies. Yet 18,000 planners and 13 associations.
The problem is actually advisers. It’s a very diverse sector and advisers belong to associations that don’t represent their needs.
The FPA recently asked for member feedback on a QAR. The feedback was overwhelmingly against exemptions for super funds. Yet the FPA is putting together a joint submission with the FSC and those Super funds that will likely say the opposite, all because the FPA sees Super funds as a source of new members. Until Planners look at conflicts of interest within two major bodies we’ll never get the right political outcome.
Yep, the politicians do the damage and then it’s the industry’s fault. Better get used to opposition, Stuart.
This is from a bloke who – along with his Lib mates – tried to destroy the financial planning industry. Long term Libs voter but never again, sorry.
Yes agreed. Stuart needs to settle into opposition – I for one intend to keep him there – and many more than just me. His attitude stinks.
Cooperation? Like what the FSC/FPA/AFA did with O’Dywer to screw the industry ably supported by the Liberal aligned Banks? The LIBS are finding it very hard to recruit quality people into their party…..and here is a prime example of their difficulties. The FPA/AFA deserve each other…..lucky the FPA got plenty from the Banks to sustain them both for a while.
Mr Robert should resign his position effective immediately. He was no use when the LNP were in power. He’s even less use now.
This is satire – right ?
Correct…It’s a never ending episode of
Yes Minister!!
The Liberal Party no longer own the right to comment on Financial Services at all.
This joker is constantly referring to issues his Govt didn’t address correctly by palming the responsibility back to advisers and the advice industry.
He’s a complete joke & a disgrace.
Clearly the Liberals have little concern for the number of Primary Votes lost to the Professional Financial Planning, family, staff and clients – at their cost. Welcome to the opposition party.
Advisers would like to see a competent opposition that represents the interests of the people that were once their core voters. If Mr Robodebt stays in this role, its clear neither of us will get what we want.