Industry welcomes move to enshrine terms
The major industry bodies have welcomed the introduction of legislation into Parliament that will enshrine the terms ‘financial planner' and ‘financial adviser' in law.
Financial Planning Association (FPA) chief executive Mark Rantall, whose organisation has been a vocal champion of the move since April 2011, said it was "a historic day for financial planning and for all Australians".
"The FPA has long called for ‘truth in labelling' for the protection of consumers ... We welcome the introduction of the legislation and thank Minister Shorten for honouring his commitment," said Rantall.
Association of Financial Advisers (AFA) chief executive Brad Fox said the Bill was about the "understanding and perception of financial advice".
"We believe that this legislation is good for financial advisers and also for the consumers who rely upon financial advice. Consumers deserve to have clarity with respect to who they are seeking advice from," said Fox.
The legislation will allow consumers to identify a "trained, qualified provider from any other individual purporting to have this expertise," said Fox.
Self-managed superannuation fund (SMSF) Professionals' Association of Australia (SPAA) chief executive Andrea Slattery also welcomed the move to tighten the use of the wording around ‘financial planner' and ‘financial adviser'.
"SPAA has long advocated professionalism and the highest standards to ensure SMSF trustees get the best advice, and believe this move by the Government is a step in the right direction," she said.
The legislation still has to pass both houses of Parliament, and it remains to be seen if the Coalition will challenge the move down the track.
After the Future of Financial Advice reforms were passed last year, Opposition financial services spokesman Mathias Cormann told Money Management he was not convinced the extra legislation was warranted.
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