Financial advisers can do more to facilitate financial literacy, according to the Association of Financial Advisers (AFA).
In a submission responding to the Australian Securities and Investments Commission (ASIC) Consultation Paper 295 – National Financial Literacy Strategy Consultation 2017, the AFA said that while schools and universities were a good place to start with respect to financial literacy, this was not an answer on its own.
“This will have a positive impact over time, however on it’s own it is not sufficient,” the AFA said. “Another key option is through the workplace, where it is possible to access a significant number of people, however it is more feasible for large and medium sized employers, rather than small employers.”
The submission said corporate superannuation advisers were already active in this segment of the market and could be further engaged to achieve better outcomes for the employees.
“Another angle of approach is via community groups, churches and sports clubs,” it said. “Any option where it is possible to organise a larger number of people, with ready access to a venue, is worthy of consideration.”
“We also note the opportunity for better engagement with professional practitioners and intermediaries,” the submission said. “We are conscious that financial counsellors are often seen as a good access point, however it is important to appreciate that access to financial capability education should not just happen at a time of crisis, but also at a time of opportunity.”
“We believe that financial advisers can do more to facilitate financial capability education and believe that this could be achieved by increased collaboration with professional associations and financial services licensees,” it said.
