The FPA is continuing to emphasise the need for higher educational requirements within the financial advice industry, saying it will help “advance the profession” in its submission to a parliamentary joint committee (PJC) inquiry.
In the submission, FPA chief executive Mark Rantall said it focuses on the need to increase minimum education standards and requirements for those providing personal financial advice to consumers.
“The PJC Inquiry, designed to examine financial planner education, professional standards and ethics, and recognition of professional bodies, will help advance the profession of financial planning,” Mr Rantall said.
The FPA has welcomed the opportunity to put its views forward on what specifically this advancement should look like in terms of minimum degree qualifications and general advice being renamed “general or product information”.
“When all financial planners are members of a professional association, when all financial planners are listed on a public register, when more financial planners carry the world class CFP designation, we are in a better position to uphold trust in our industry,” Mr Rantall said.
“When implementing new standards, it’s important we lead for the future and respect the past,” Mr Rantall said.
“We therefore consider it important to introduce an appropriate transition and pathway options for existing advisers and an approved degree requirement for new advisers from 1 January 2018,” he said.
Mr Rantall highlighted recent ASIC enforcement actions to demonstrate the clear distinction between financial planners who are “members of a professional association” and those who are not.
“Review of data collected since 2009 on ASIC enforcement action concerning individuals in relation to financial advice shows that FPA members represent significantly less than five per cent of the overall ASIC enforcement action each year,” Mr Rantall said.
SUBSCRIBE TO THE IFA DAILY BULLETIN
- 18 Aug 2017ASIC permanently bans former AMP adviserBy Staff Reporter
- 18 Aug 2017IRESS announces first half resultsBy Jessica Yun
- 18 Aug 2017Banks the key to closing advice gap, Tria saysBy Larissa Waterson
- 18 Aug 2017Adviser ethics certification launchedBy Staff Reporter
- 18 Aug 2017Banks evade FOFA, industry funds claimBy Larissa Waterson
- 16 Aug 2017UBS appoints head of wholesale distributionBy Staff Reporter
- view all