ASX moves to alleviate adviser confusion
THEAustralian Stock Exchange(ASX) has moved to shore up what it perceives as a gap in knowledge standards available for financial planners who provide advice on listed securities.
According to ASX business development manager Sara Emerson, the standards provided by theAustralian Securities and Investments Commission(ASIC) in PS 146 are very broad and generic.
She argues there is confusion among advisers and dealer groups about the level of knowledge and training needed to provide compliant advice on different listed security types.
Emerson says in some cases the ASX found the dealer groups that offer direct investing were not even comfortable with the PS 146 level of compliance and wanted access to additional courses.
The ASX has compiled a booklet interpreting PS 146 that outlines the recommended minimum knowledge and training required to advise on each individual type of listed security.
The document will outline the risks and characteristics of each product to help financial advisers, Emerson says, and cites the example of an interest rate security, which would cause confusion because it is relatively new to the market.
Emerson adds the issue is even more pressing given theFinancial Planning Association(FPA) has released figures showing 62 per cent of planners offer advice on listed securities.
TheASX Knowledge Standards for ASX-listed Investmentsbooklet will be launched at the FPA’s national convention this week.
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