The FPA has agreed with an ASIC report that financial advice institutions are not doing enough to ensure they are hiring compliant financial advisers.
In a statement yesterday, FPA chief executive Dante De Gori said while the findings in ASIC’s review around inadequate background and reference-checking processes at institutions are disappointing, they are not surprising.
“Consumers need to trust that they only consult with professional financial planners, and poor reference checking is a significant concern,” he said.
“We encourage all licensees/employers to follow the FPA’s reference checking requirements in the code (including the reference checking consent form), when considering employing or authorising a representative who purports to be a member of the FPA or a former member of the FPA.
“The FPA knows from experience that many licensees/employers do not have a process for checking with the FPA for names of financial planners that have had disciplinary actions against them, so we strongly advocate the use of the facility.”
Mr De Gori added that the FPA will continue to work “proactively with the government and industry to raise standards of financial advice for Australian consumers”.
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