Alignment of associations to boost consumer confidence
Financial services organisations should work together to rebuilding consumer confidence in the planning sector, according to the Financial Services Institute of Australasia (Finsia).
Finsia chief executive, Russel Thomas said no one association had all the answers to improving trust and confidence in the advice industry follow the recent criticism planners have faced in the mainstream media.
"A marketplace of choice for professional associations in this area is good for consumers, professionals and financial institutions," he said.
"It is now time to improve the alignment of associations across the sector to focus on the improvement of consumer outcomes."
Thomas back recommendations made by the Financial System Inquiry (FSI) and the recent Parliamentary Joint Committee (PJC) on Corporations and Financial Services Inquiry, saying industry associations, financial institutions, regulators and the Government all had a role to play in improving the standard of advice provided by planners.
"Finsia supports the genuine desire among financial institutions to address the serious concerns that have been raised about the quality of financial advice and products", he said.
"We particularly support the PJC report's recommendation that an independent council be established to monitor a national exam, and the FSI's call for a targeted and principles-based obligation for product issuers and distributors."
AUTHOR
Nicholas O'Donoghue
Recommended for you
ASIC has launched court proceedings against the responsible entity of three managed investment schemes with around 600 retail investors.
There is a gap in the market for Australian advisers to help individuals with succession planning as the country has been noted by Capital Group for being overly “hands off” around inheritances.
ASIC has cancelled the AFSL of an advice firm associated with Shield and First Guardian collapses, and permanently banned its responsible manager.
Having peaked at more than 40 per cent growth since the first M&A bid, Insignia Financial shares have returned to earth six months later as the company awaits a final decision from CC Capital.
