In a submission to the parliamentary joint commitee inquiry into adviser standards, the Professional Stamdards Authority (PSA) said it is likely there is a “larger systemic failure in the education/quality system of the industry”.
The PSA is the government agency representing the Australian government’s Professional Standards Councils and is headed by former FPA chief professional officer Dr Deen Sanders.
The submission said the systemic failure of educational standards includes issues such as “poorly constructed educational standards [with] generic expectations that do not capture the technical or professional requirements across a diverse industry sector”.
The submission also argued there is insufficient assessment or content quality controls by Innovation & Business Skills Australia and the Australian Skills Quality Authority.
The inability or unwillingness of ASIC to assess program quality or support and encourage improved education programs or quality mechanisms is also an issue, according to PSA.
PSA said licensees have also failed to “suitably scrutinise or quality control advisers, education and providers”.
The submission made a number of recommendations, including an alteration to reward and remuneration practice to incentivise consumer protection; building a professional standards and oversight system; and codifying separate professional, sales, technical and service roles.
The PSA said the government should introduce new models of licensing, separate advice and manufacturing licence models and incentivise professionalism and individual obligation.
Education stds do need to be raised.
However while ASIC refuse to rule on the suitability of a product or service offering nothing will fundamentally change. ASIC are reluctant to get involved when they should be. The most recent example of their lack enthusiasm for an active regulatory role is their inability to have action persued against Firepower. involved
PS 146 – is completely inadequate. How any person, government body, industry body or ASIC can claim that 4 basic diploma level subjects is adequate, is a complete and utter joke.
At the most basic minimum the full Diploma of Financial planning should be required = 8 subjects and is equivalent to about 1st year university.
To be a profession there should be no doubt that a degree is the minimum entry level required.
Wake up ASIC and anyone else that does not see this requirement.