Reference checking vital when hiring advisers

The Financial Planning Association (FPA) has called on all financial planning licensees/employers to adhere to the association’s reference checking requirements in the code when employing someone claiming to be a member or former member of the FPA.

In acknowledging the Australian Securities and Investments Commission’s (ASIC’s) findings into how Australia’s largest financial advice firms dealt with poor advice and non-compliant advisers from 2009 to 2013, FPA chief executive, Dante De Gori said complying with the code of professional practice is a way to ensure advisers were complying with the law.

“The finding that there are inadequate background and reference-checking processes in place is disappointing, but not surprising,” De Gori said.

Related News:

“Consumers need to trust that they only consult with professional financial planners, and poor reference checking is a significant concern.”

De Gori said licensees must follow code requirements, including the reference checking consent form, when employing someone claiming to be a current or former FPA member.

The process would involve checking the person was a member of the FPA and ensuring all information regarding any current complaints or past disciplinary proceedings were provided.

“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,” De Gori said.




Related Content

Financial services ranked amongst least trustworthy industries

Consumers rate transparency and ethical behaviour as vital to building industry trust, and are calling out financial services as one of the least trus...more

Are super funds selling their members short on tax?

Australian superannuation funds could be selling their members short by up to a combined $6 billion a year because they are not managing their tax pos...more

ASIC releases cost recovery forecasts

The Australian Securities and Investments Commission (ASIC) forecasts its efforts to regulate the financial advice sector will cost $29.5 million, whi...more

Author

Comments

Add new comment