ASIC concerned about quality of advice
ASIC is concerned about the quality of advice being given in Australia, driving a push for standardisation of training and licensing, according to director of regulatory policy, Malcolm Rodgers.
"We looked at the industry in the nineties and how we would regulate it," he says.
"As a result we have moved to a set competency standards, such as IPS 146. Everybody needs licences and everybody in the business needs to be to the same standard."
Rodgers says ASIC wants consumers to feel confident about the people who are giving advice.
"If the advice is specialist advice, then the public wants to know that the person really knows about the specialist subject," he says.
IPS 146 is built around people getting accreditation and, with exceptional cases, personal accreditation, Rodgers says.
"People should think about the objectives of IPS146 as it will take some time to comply with the requirements," he says.
Accountants will need to comply with IPS146, the same as advisers. However, Rodgers admits the differing qualifications of both professionals means the standards do not fit both.
"There will have to be some training by accountants to meet the requirements of IPS 146," he says.
"We intended that there is a minimum standard and we do not intend IPS146 to be substituted for the training standards of the various professions.
"In the end we are looking for the emergence of the professional financial planner."
Rodgers says IPS 146 is not a one-off exercise either; he says it is about on-going training.
"Look to licences as on-going training, but if things go wrong, it will be the licencee that we have in our sights," he warns.
Recommended for you
The month of April enjoyed four back-to-back weeks of growth in financial adviser numbers, with this past week seeing a net rise of five.
ASIC has permanently banned a former Perth adviser after he made “materially misleading” statements to induce investors.
The Financial Services and Credit Panel has made a written order to a relevant provider after it gave advice regarding non-concessional contributions.
With the election taking place on Saturday (3 May), Adviser Ratings examines how the two major parties could shape the advice industry in the future.
