The financial advice industry needs a “radical overhaul” of consumer-facing information that goes beyond educational qualifications, says BT Financial Group CEO Brad Cooper.
In a statement issued on Friday, Mr Cooper said a “customer rating” should be “widely accessible” for all consumers interested in seeking the services of a financial adviser.
“We would like to see a customer rating for all advisers that would be widely accessible by all Australians,” said Mr Cooper.
There are several factors that determine whether a financial adviser is right for a client, he said.
“We have long supported the creation of a public register that would encompass the education, years of experience, employment history and areas of expertise and annual certification results for every financial planner,” Mr Cooper said.
“Education is critical but assessed in isolation does not provide a full picture of the quality and suitability of an adviser.
“A common industry standard covering advice is also required to establish a working group to examine the creation of such a register.”
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