Labelling advice would boost transparency: Infocus
Proposals to introduce a ‘restricted advice' label would help to bring transparency to the financial advice consumers Infocus managing director Rod Bristow believes.
Backing issues raised by the Finnacial System Inquiry relating to the proposed adviser register and the Australian Securities and Investments Commission's proposal for labelled advice, Bristow said greater transparency was needed to ensure consumers were aware of where their advice was coming from.
"As we've said many times, healthy competition demands a diverse market structure," he said.
"This includes a mix of independent and aligned financial advisers. Making the ultimate holding company of a licensee clear for consumers will enhance consumer understanding of their advice and product relationships."
Bristow said the importance of labelled advice was highlighted by a recent Roy Morgan Research report, which revealed that the majority of consumers were unaware the dealer group they were using was aligned to a major financial institution.
"It's hard to believe with all the recent media surrounding the industry that consumers aren't doing their homework on who their adviser works for," he said.
"We don't think it's appropriate to have consumers wading through complex web pages or having to read fine print in their FSG to determine their advisers' employer."
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