The future uptake of financial advice will be supported by the announced legislation for an independent body to set higher professional standards, the Association of Financial Advisers (AFA) believes.
The association's chief executive, Brad Fox, said the legislation was good news for Australia's financial advisers and consumers needing financial advice.
"Many Australians remain confused or uninformed about what a financial adviser can do for them and their lifestyle and this legislation will help with that," he said.
"Financial advice is taking another step toward becoming a widely recognised and appreciated profession."
Fox said that it was important for all advisers to take note of the key transition dates and start early in upgrading their qualifications.
"Balancing time and commitments to family and clients, running a practice, normal professional development activity and studying makes for a full workload and starting as soon as possible will support keeping things in balance," Fox said.
Comments
Surely once these new standards come into effect, coupled with LIF and the already in force Best Interests Duty, we will be able to see a reduction in the amount of Compliance that advisers have to go through in order to make the most basic of recommendations? If not, all these increased standards will lead to is higher costs, which will result in even fewer people seeking advice, and fewer people viewing financial advice as a worthwhile career (which should make ISA/ALP happy).
Wouldn't that be nice. We did get scaled advice for a little while and then sort of lost it again with a "catch-all" clause. You have to ask why are we doing an SOA and even a full fact find for a simple new risk policy? Commission disclosure is on the quote. A file note would be enough to justify the level of cover. Client wants to start a $5,000 investment for his kids....sorry, full SOA and fact find. Our dealer group won't let us use any small amount ROAs etc. Can't do an ROA unless an SOA is held anyway. Look at all the funeral bond investments that will be placed after 1 Jan 2017...full SOAs. Charge the client $2,000 to invest $12,250? Sounds fair to me. Hello AFA and FPA...anyone listening? I guess changes like this don't help fill your financial bucket.
One needs to ask what is the role of Dealer groups post FoFA? As the adviser you now bear the risk not the Dealer group, yet you're the one paying large dealer groups fees and buried in red tape. You've evolved post FoFA, Fund Managers have made changes but what have dealer groups done to make planning more professional in the last 10 years....nothing. The model needs to be changed, for the betterment of the general public and to prevent outside parties like the ISN and FSC controlling our destiny.
Spot on, we dont need dealerships, they need us, they are the last bastian of the conflicted renumeration. They also need to move to fee for service as I would like more transperancy in what they use my fees for, not just can I have 20K and see you next year at the audit. PS you will also need to pay for your own conference which will be circa $4,000 after travel just to hear some spivs talk about new sales techniques they stole from a 1960s vacuum sales persons book.
You know its in the AFA and FPA charter to educate the public about financial advice, I see NOTHING in the mainstream papers doing this, for the past 10 years ive been in this role. Raising the education standard (which I agree with), also does not explain to people what planners do, how can it?. Its not hard to get some stuff out into a mainstream media on what we do, case studies and so forth, but no lets speak to the converted at expensive conferences and put releases out on the website that no one visits.
Interesting to see the FSC fighting to not have to allow its Code of Ethics be approved and scrutinized by ASIC but our is.
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