Financial advisers are being urged to add yet another qualification to their armoury, with CFA Societies Australia talking up the benefits of the CFA qualification when it comes to the ‘best interest’ duty.
In a statement released today, the combined Charter Financial Analyst (CFA) Societies of Australia argued that CFA charterholders are “well placed to fulfil the best interest duty required by financial advisers”.
CFA Society of Melbourne president Paula Allen said the best interest duty is “consistent with the ideals within the CFA Institute Code of Ethics and Standards of Professional Conduct”.
“One key element of the best interest duty is adviser competence, which prescribes the need for advisers to demonstrate they have the expertise in the relevant subject matter on which they are advising, for example, superannuation or investment,” said Ms Allen.
“In order to comply with their obligations, advisers need to consider their professional qualifications and training, as well as their knowledge and skills before providing advice,” she said.
“Appropriate investment education is essential for advisers meeting their legal and professional obligations in the area of investment advice,” said Ms Allen.
"Moreover, the program entrenches the importance of ethics, which represents between 10 to 15 per cent of the CFA program curriculum depending upon the level,” she said.
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