A central register of advisers could help weed out rogue operators in the financial advice space and rebuild trust in the profession, the Association of Financial Advisers (AFA) believes.
Announced last week by the Coalition as part of the Future of Financial Advice (FOFA) amendments, the move could remove a significant barrier to advice, by identifying advisers with qualifications and expertise in various fields, the AFA's CEO Brad Fox said.
He said some consumers are hesitant to seek financial advice out of fear of attracting an unqualified adviser.
"Only people with appropriate qualifications, experience and legal authority will be on the register. This will increase the protection available to consumers."
Fox said the register could also improve trust in the profession by allowing consumers to bypass those purporting to be advisers who do not have the qualifications or experience.
"Transparency builds trust, and the register, along with the other requirements suggested by the Palmer United Party that explicitly require an adviser to ensure the client is aware of their rights, and the adviser's responsibility under the Best Interests Duty, shows FoFA has moved in the right direction," he said.
