The SMSF Association is advocating a co-regulatory approach as the most effective way to improve professional standards in the financial advice industry.
SMSF Association chief executive Andrea Slattery said those criticising the push by the Parliamentary Joint Committee on Corporations and Financial Services (PJC) for greater co-regulation in financial advice are missing the main point.
“Our Association is firm in the view that this approach is the most effective way to foster a profession instead of a compliance-based approach to financial advisor education and ethical standards,” said Ms Slattery.
“Building a professional model should improve consumer confidence in financial advice as consumers can trust that they have attained the necessary education and competency requirements, are members of professional associations, are bound by professional and ethical conduct rules and, most importantly, are continually looking to improve their skill set.”
Ms Slattery said the role of professional associations is critical to this process.
“In other professions, such as medicine, law and accounting, their professional associations play a critical role in educating their members, promoting ethical behaviours and protecting consumers,” she said.
“It patently works in those professions and should be no different for financial advice.
The SMSF Association looks forward to working with the government to advance the building of the financial advice profession, Ms Slattery added.
“We have been a long-time advocate for improving the education and training of financial advisors to deliver better, more specialised advice, especially in the SMSF sector, and believe the co-regulatory approach is the best way to achieve this goal,” she said.
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