In a submission to the parliamentary inquiry into advice standards, the Finance Sector Union questioned the motives behind announcements of higher minimum adviser standards by institutions such as AMP, CBA and NAB.
“While the move by some Licensees to self-impose higher education standards is a step towards having a better educated system, it would appear at a surface view these changes have been brought about to address the current public sentiment, in particular the distrust of financial planning, [rather] than to do with any genuine attempt by licensees to better the integrity and transparency of the industry,” the FSU’s submission argued, adding that RG146 can still be “achieved in under a week”.
The submission said that while efforts to increase education standards may result in a “positive outcome for many consumers” it adds that there is “still the gap that an increased education standard would not address”: conflicted remuneration.
The FSU calls for “delinking the planner/organisation from the financial benefits associated with ‘specific’ product sales”, arguing that the structural separation of product and advice cannot be achieved by higher education standards.
At the same time, however, the union recommends that the government raise education standards in the financial planning industry to a degree minimum as well as calling for the introduction of a national examination.
The FSU also backed the government’s proposal of an adviser register and the concept of a “national uniform code of conduct” for the industry.
Let’s also “delink” the payment of life insurancer commissions to the unions for the industry funds and give members of those funds some choice outside of union directed/enforced options (or rather lack thereof).
Don’t forget the FPA flogs more courses.
Online rubbish of course but as long as they get paid, that’s all that counts right FPA……problem solved.
As usual the unions convieniently ignore the facts. Most union Super trustees have less than RG146. If anything at all they have just the super subject. And they supposedly look after billions.
People in glass houses……
Moron. Like the false ‘compare the pair’ ads weren’t all about public sentiment? What an idiot.
Delinking needs to start at the base level – the ISA funds themselves. Remove the union movement from superannuation involvement (how did a bunch of wharfie thugs get their hands on Australia’s retirement wealth in the first place? That’s right we can thank Hawk & Keating Labor Gov’s for that!) and hand it over to truly independent trustees and administrators who can run it as a real not for profit group…
The Unions are again misrepresenting the facts. Asic will not issue a License to someone who has nothing but an RG146 accreditation and as Damian says no AFSL will grant an AR on this certificate alone. RG146 is the basic qualification for applying for an admin, para-planning or call centre job in the financial services industry, including industry funds. I, for one, can attest to the requirements the industry imposes and all the checks and balances which must be met.
The FSU knows better, as many of its staff require this certification. The employment, wages and conditions enjoyed by its members are as a result of the success of the organisations they seek to diminish.
Unfortunately even The Australian, in a weekend article has bought into this wacky line of thinking about our industry. A Cert 111 in accounting or justice doesn’t allow me to set up an accounting or legal practice and neither does RG146 allow me to set up as a Financial Planner.
What buffoonery, being accused of increasing education standards just to appease public sentiment yet at the end of the article stipulates that education standards need to be increased. What a typical union buffoon.
When it comes time to increase controls over unions to stop mismanagement waste and bullying within the union movement, to bring the union management under control and to make them accountable, they all get ansie and protest, go on strike and cause as much disruption & inconvenience as possible. Yet we allow them to comment on important financial matters. A joke. Why would anyone take them seriously.
More Accountants in jail than Advisers but it takes 3 yrs to become an accountant and 14 days to be an adviser.
Smoke and mirrors by the big firms to bluff consumers and a chance for the ex painter to get a tag along his name as an adviser but none of this will wont change the fact that bad advice will be around regardless of this con.
Advisers should be FREE for the product providers and Planners should be LINKED to the product providers so the consumer knows exactly who they are seeing.
The FGS for ABZ Wealth hides the fact they they are owned by Product Provider B, if you get my drift
It seems to me that tne more educated we become the more complex information transfer becomes to the point where many struggle to understand what they are doing. Seems to me there are too many products, with simple names like ‘ Capital Guaranteed’ is it guaranteed -by whom?. Maybe a degree in C.S. would be a wonderful addition to the world of Finance. Then C.S. is not a taught subject at Uni……(C.S. Common Sence). Its a great way to start a paragraph to a story. A 400,000-member strong trade union…… I just wonder how many of the 400k strong are aware of the ‘Union has accused….’
I wouldn’t say none Damian
You may get an RG146 certificate in a week, but what Dealer Group would allow a cowboy to set up a business with no experience. NONE.
I don’t give a hang what standard/ exam result etc is required to be an Adviser so long as it NEVER becomes compulsory for individuals or SMSF trustees to have one.
To the FSU Spokesperson – you wouldn’t be worried about how your advisers would get on if they had to have similar minimum education standards by any chance?
I would like to see what “self-imposed” level of minimum education standards the FSU have/propose for their own financial planners and whether they have “de-linked” their financial planners to their own industry super products? Of course not, that wouldn’t suit them it’s a whole lot easier to point the finger at everyone else!