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.
Stimulate new ideas. Stimulate new thinking. Top up your CPD points and hear from industry experts with ifa’s Knowledge Centre. Keep up to date with the latest trends and reforms, all while adding to your CPD hours. Explore the Knowledge Centre now.
The government has introduced legislation around the adviser disciplinary body into parliament. ...
Marc Bineham, former AFA national president, has launched new book, The Money Sandwich, aimed at helping over-50s better manage their money and retire...
Mayfair founder James Mawhinney has said a new venture he’s offering to investors is within the bounds of the law despite being hit with a 20-year ...