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CBA backs financial planner passport scheme

The Commonwealth Bank of Australia has called for a number of reforms providing additional scrutiny of the financial advice industry, including a US-style passport scheme.

 In its official submission to the Senate inquiry into the performance of the Australian Securities and Investments Commission, CBA called for a number of reforms that would aid consumer confidence in the financial advice sector and enhance barriers to entry.

“Notwithstanding the positive impact that the FOFA reforms are having on the financial planning industry, CFP advocates that consideration should be given to ensuring that those licensed to give financial advice are of good character,” the submission states.

Specifically, the submission backs ASIC’s suggestions to ensure “requirements for entry into the industry and becoming licensed to provide financial advice are appropriate” as well as supporting the call for ASIC to maintain a register of financial planners.

The bank also called for “the introduction in Australia of a financial planner passport scheme similar to the one operating in the United States”.

The passport scheme should be “administered by ASIC and funded by industry” the submission states.