Proposed improvements to adviser training requirements outlined by the Australian Securities and Investments Commission (ASIC) yesterday are a necessary step for both the competence and reputation of advisers, industry participants believe.
Speaking to ifa, the chief executive of non-aligned group Shartru Wealth, Rob Coyte, said the improvements are “absolutely” needed.
“If the industry [overall] can become more qualified, that will be a positive in the way the industry is viewed,” he said.
“A lot of people are still not using advisers. One reason is because people perceive the industry as a bit of a product flog rather than getting advice based on sound principles.”
The two phased increases from 1 January 2015 and 1 January 2019 will apply to new advisers and to those changing specialisations and will increase on knowledge and skill requirements for advisers beyond the current diploma-equivalent to something more akin to an advanced diploma level and eventually more in line with a bachelor’s degree.
“The industry has to acknowledge the fact that there is a perception problem,” Mr Coyte said.
“In some cases that might be right, in some cases it might wrong, but what we need to do is counter that. These [proposed] measures are best practice anyway.”
Financial Planning Association general manager of policy and government relations, Dante De Gori, said the new measures are part of an “inevitable” shift towards a degree qualification as a minimum standard of entry to the industry.
“There is an expectation of standards from investors seeking financial advice, they want to make sure that person is qualified to a high degree and a degree qualification entry is inevitable in our industry,” he said.
“In any other profession there is a clear pathway. We need to make sure in financial advice, if you want to become a financial planner, there is a clear pathway in terms of your entrance requirements,” he added.
IOOF's boss has outlined the group's plans for growth, as the company saw its pr...
Another industry body has joined calls from the AIOFP and AFA for the government...
The listed platform group saw its profits rise more than 30 per cent in the firs...