Concerns expressed over relevance of bodies on adviser register
The Financial Planning Association (FPA) has expressed concerns regarding the professional associations listed on the Financial Advisers Register (FAR) questioning how some of them are relevant to the provision of financial planning advice.
The comments, by FPA General Manager Policy and Conduct Dante De Gori, follow the addition of 16 professional associations and bodies to the FAR administered by the Australian Securities and Investments Commission (ASIC).
Of the 16 bodies named six were related to financial planning, three to accountancy, two to superannuation funds and trustees and one to stock broking, general insurance broking, managed account providers, investment analysts and the provision of education.
"Many of these bodies do not have individual advisers providing financial advice and while the adviser register is a positive thing as it is open and transparent, what does it say to consumers with this list? How useful is the membership of some of these bodies to the provision of financial advice?," De Gori said.
De Gori said the inclusion of professional association memberships and education qualifications does not, at present, restrict the use of the term ‘financial planner' as ASIC had yet to adopt any recommendations from the PJC Inquiry into Standards of Advice.
That inquiry recommended linking inclusion on the register only to advisers who also had membership of a professional body which had adopted professional standards accredited by a third party statutory body — the Professional Standards Council. In doing so it would restrict the term ‘financial planner' without the need for enshrinement under law.
However De Gori said that while the FAR has not proceeded down that route it may still do so after the consultation on the PJC's final report ends in June and that "enshrinement via the register was not dead and was very much still in play depending on what announcement were made at the time".
"The current form of the adviser register is a response to Federal Government plans announced last year with ASIC not asked to act on the PJC recommendations, however if they are endorsed by the government it is likely the register will be amended to suit."
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