The Financial Planning Association (FPA) is seeking to link the new single disciplinary body to adviser registration as a means of financial planning becoming a profession.
In doing so, the FPA is recommending that the new registration process become what amounts to “professional registration” but it is now saying that the process should be run as a reflection of the current authorisations issued under Australian Financial Services Licenses (AFSLs).
The FPA said its proposed model would make the registration of a financial planner the responsibility of their AFSL.
“The registration is then contingent on the planner’s ongoing engagement by the AFSL and effectively duplicates the existing authorisation process,” it said.
The FPA has canvassed the proposal as part of its submission response to the Treasury consultation on a Single Disciplinary Body for Financial Advisers.
The FPA argues that a professional registration should demonstrate that an individual has met their professional requirements, is in good standing in the community and is ready to serve their clients.
“A financial planner’s registration should then follow them throughout their career and be a valued symbol of their professional status and commitment to uphold professional values. The creation of a personal obligation to register is an essential component of any professional framework,” FPA chief executive, Dante De Gori said.
“It’s the missing piece to the puzzle. Similar to the legal, medical or architectural professions, the FPA strongly supports a model in which registration is the personal responsibility of each financial planner and is not connected with their employment or authorisation under an AFSL.”
“A true professional registration will have flow-on benefits for consumers as it will improve the quality of the information on the Financial Adviser Register and ensure anyone can easily check the qualifications, registration status and disciplinary record of their financial planner.
“Establishing a professional registration for financial planners is a perfect opportunity to build the Financial Adviser Register into the valuable resource that it could be,” De Gori said.