ANZ endorses competency exam, higher CPD bar
ANZ has broken ranks with a number of its financial services counterparts, in backing a national competency exam, higher continuing professional development (CPD) requirements and a planner-funded last resort compensation scheme.
In a submission to the Senate Economics Committee's Scrutiny of Financial Advice inquiry, the bank said a national competency exam would give consumers confidence that their planner meets an industry benchmark.
It recommended the US Financial Industry Regulatory Authority's Series 7 exam as an appropriate blueprint.
It also said increasing CPD requirements for planners to a minimum 40 points per year should be considered, alongside "increasingly weight on ethical conduct".
ANZ also firmly backed planning firms being insured to compensate all customers of poor advice if the licensee does not have the financial means to cover losses.
"When dealing with other people's money, a high bar of professional responsibility must be set, particularly in order to prevent the systemic risk that clients of individual financial firms are unable to seek redress where poor financial advice is given," it said.
"Those firms that choose not to participate in an industry insurance scheme should demonstrate an adequate capacity to provide redress to those who have suffered loss in extreme cases."
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