The IFAAA said the Gold Standard of Independence symbol will help clients determine if an adviser is “genuinely independent” and not affiliated with any “product manufacturer”, akin to the Heart Foundation Tick of Approval.
“Remove the incentives and all you’re left with is the right thing to do,” said IFAAA president Daniel Brammall.
“Today the IFAAA is launching a symbol that Australians can now look for to find a professional independent financial advice that tolerates no conflict,” he said.
Mr Brammall said that scandals such as Commonwealth Financial Planning have all had financial advisers “incentivised” by either commissions or sales which led to the loss of public dollars.
“What is required to stop these scandals from occurring is something that’s politically impossible to do,” Mr Brammall said.
“It has to be done through self-reform.
“The IFAAA has taken a stand by introducing the concept of the Gold Standard of Independence, which addresses the one reform that is needed in this industry to protect the wealth of Australia,” he said.
