Assistant Treasurer Josh Frydenberg has announced the government will consult with the advice industry before considering any recommendations from the inquiry into adviser standards.
In a statement issued yesterday, Mr Frydenberg said the recent PJC report “makes it clear” that the regulatory arrangements for the training of advisers are no longer sufficient to protect consumers.
“It is now time to capitalise on positive industry momentum and put in place an enduring framework to improve the qualifications and competence of financial advisers, and to enhance the financial advice industry's professional standards and ethics,” Mr Frydenberg said.
“The committee's recommendations draw from the practices of established professions such as law, medicine and accounting, and the best practice regulatory frameworks applied to financial advisers overseas.
“The government will carefully consult with all stakeholders before making any policy decisions on the committee's recommendations, including on appropriate implementation and transition timetables,” he said.
Mr Frydenberg said several of the inquiry’s recommendations will be considered as part of the government’s response to the FSI, including those relating to amending the Corporations Law definitions of ‘personal advice’ and ‘general advice’.
“It is imperative that Australians have access to financial advice they can trust, and which is affordable,” Mr Frydenberg said.
“The government's goal is to deliver an efficient, transparent and competitive financial services system, capable of fulfilling the needs of consumers, and allowing industry growth and innovation,” he said.
Mr Frydenberg added that consultation on the inquiry’s recommendations will occur until the end of June 2015.
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