In a joint statement, Industry Super Australia and the Australian Institute of Superannuation Trustees have called for mandatory ethics classes for financial advisers, arguing the industry is not ready to self-regulate.
ISA chief David Whiteley said FOFA in its original form, as well as other efforts to raise standards and eliminate conflicts of interest in the advice sector, are welcome but are not a "silver bullet".
“The reputation of the financial advice industry is in tatters," Mr Whiteley claimed. "Improved educational standards are important, but iron-clad consumer protections that remove conflicts of interest are the foundation for community trust.
“The efforts of the industry to address educational requirements, while lobbying for a 'claytons' best interests duty and the return of sales incentives, is contradictory and will significantly retard achievement of professional status"
AIST chief executive Tom Garcia seconded the call to introduce a formal ethics component of financial planning educational courses.
“We need to move with the times and incorporate solid ethics and conduct training in line with other industries such as law and medicine.
“Financial planners are providing a service that is just as important - the requirements of the industry should reflect that.”
Both organisations say they support a degree minimum standard for advisers.
Magellan wrapped up a tumultuous year with a 9 per cent drop in average funds under management.
With more still to come.
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