ASIC claims licensee changes not creating consistent advice standard
The Australian Securities and Investments Commission (ASIC) has reiterated its desire for a national exam for financial advisers stating that recent changes around education by licensees still did not guarantee a consistent national standard for advice.
The comments were made by ASIC chair Greg Medcraft in his opening statement to a hearing of the Parliamentary Joint Committee on Corporations and Financial Services being held in Canberra today.
“The momentum created by these initiatives is pleasing. However, they do not guarantee a consistent standard across the country,” Medcraft said.
Medcraft said ASIC was passionate about ensuring standards were consistent and at a high level and that consumers deserved a consistent national level of advice and minimum level of trust in advice which was not being delivered under the various efforts of the planning and advice groups.
Medcraft stated that national exam conducted and overseen by ASIC, but covering areas of competence and skills set by industry, would provide a level playing field and sets minimum levels of assurance.
“We want a co-regulatory model where industry sets competence levels for advisers and then ASIC oversees the exam, which tests these competencies,” Medcraft said.
“ASIC does not want to micro-manage the education process. We are focused on outcomes. In this case, (the) national assurance that financial advisers do meet a minimum level of competence based on a degree level and tested in a secure environment.”
“Our early thinking is that the exam should be modularised to take account of the different skills different types of advisers have. There should be a compulsory module for the basic skills all advisers need. Ethics needs to be the cornerstone of such a module. There would then be optional modules covering different areas of specialisation.”
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