Powered by MOMENTUM MEDIA
moneymanagement logo
 
 

Academics back advice profession over occupation

university/professionalisation/FASEA/code-of-ethics/

11 February 2019
| By Mike |
image
image image
expand image

The industry cannot afford to continue treating financial planning and advice services as an occupation entirely defined by market transactions, according to academics from Swinburne University.

The academics, Dr Chistina Neesham and Dr Reza Tajaddini said if some people knew more about financial planning than others, this did not give them a licence to take advantage of other people’s savings.

“There must be a social contract, and financial planning should be treated as a profession,” they said. “This means financial planning services are not just a way of trading knowledge: these services have higher aims and responsibilities too. They have a public interest to protect.”

The pair said that just as doctors were expected to contribute their expertise to the health of patients and the community, planners and advisers were also expected to engage their knowledge for securing the financial health of their clients’ investments and, ultimately, the financial health of the economy.

“Now more than ever, ethics is at the centre of financial planning education, laying the foundations for a strong culture of professionalism in the industry,” they said.

“Everything is falling into place for a strong and healthy ethics regime in Australia: we now have legislated standards, a government authority (FASEA) mandated to develop a professional code of ethics, and clear criteria for licensing financial planning services and practices through formal education.”

“Education plays a vital, central role in transforming financial planning into a true profession. Ethics should be embedded in all programs, from single units to postgraduate courses. It is essential that graduates are able to make ethical and responsible decisions that contribute to a sustainable society now and into the future, encouraged by experiential learning, creative problem solving and interactive teaching approaches.”

“Now more than ever, professional financial planners and advisors require advanced soft skills, such as interpersonal communication, decision making and conflict management. To be able to act with integrity and act in the clients’ best interest, while upholding the public interest, they need to first understand client priorities, develop empathy, and communicate effectively to solve problems and build trust.”

“Today’s universities play a crucial role by embracing ethics in their financial planning curriculum. This is a critical space where students learn how to live together, in mutual respect and harmony, with people who hold different (and even conflicting) values. Universities’ programs should engage students with industry and guide them towards building satisfying careers in the financial planning profession. High emphasis on ethics, people skills and interactive and practice oriented pedagogical approaches is more important now than ever.”

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

The succession dilemma is more than just a matter of commitments.This isn’t simply about younger vs. older advisers. It’...

20 hours 57 minutes ago

Significant ethical issues there. If a relationship is in the process of breaking down then both parties are likely to b...

3 weeks 4 days ago

It's not licensees not putting them on, it's small businesses (that are licensed) that cannot afford to put them on. The...

1 month ago

After last month’s surprise hold, the Reserve Bank of Australia has announced its latest interest rate decision....

3 weeks 6 days ago

ASIC has released the results of the latest adviser exam, with August’s pass mark improving on the sitting from a year ago. ...

3 days 14 hours ago

While the profession continues to see consolidation at the top, Adviser Ratings has compared the business models of Insignia and Entireti and how they are shaping the pro...

1 week 5 days ago

TOP PERFORMING FUNDS

ACS FIXED INT - AUSTRALIA/GLOBAL BOND