Adviser Ratings has responded to the Royal Commission by establishing a new financial adviser rating system, which would be overseen by industry heavyweights, including former Australian Securities and Investments Commission (ASIC) chair, Peter Kell, and former Financial Adviser Standards and Ethics Authority chief executive, Deen Sanders.
The rating system, to be launched later this year, would focus on quality of advice. It would provide information to consumers, advisers, industry regulators, and product developers, with Adviser Ratings noting that the latter would have a greater shared responsibility with advice channels once the Design and Distribution Obligations and Product Intervention Powers Bill currently before Parliament pass.
Kell would sit on an external ratings committee (ERC) that would ensure the rating system was managed according to a reputable governance regime. Other members would be Jerry Parwada, professor of finance at UNSW Business School, Paul Coughlin, former global head of credit ratings at S&P, and Janice Sengupta, former Aon, Asia Pacific chief investment officer.
The ERC would be supported by an external panel, which Adviser Ratings said “may grow over time as evolution of the sector demands new specialist experience”.
In addition to Sanders, who was now a partner at Deloitte, the panel would include Tom Reddaliff, Encore Advisory Group director and chief executive, and Michelle Cull of Western Sydney University’s School of Business.
“The Royal Commission advocates for increased information disclosure however the challenge for consumers is processing this deluge of information. This necessitates a carefully thought out and regularly updated summary measure of quality,” Parwada, who would be the ERC chair, said.
“A key differentiator of the proposed rating methodology is that it will be backed up by a standing research capability designed to stress test the factors predicted to influence quality of advice as well as keep track of changing dynamics in the industry.”
Comments
Another group wanting to sit in judgement of financial planners, just what we need. How about we let the clients decide.
Spot on , more hangers on for the industry. Look at these people coming out of the woodwork, trying to justify themselves. I refuse to be on the adviser ratings site, to help contribute to a few people that want to live off our names. Its a very lazy business this ratings stuff, if the directors of adviser ratings want to make money, maybe they can get a real job.
Most came out of "Choice" which pretends to be a pro consumer group. Nothing of the sort. Just the usual left wing values and attitudes aiming to sabotage free enterprise. These people have never had their house on the line!
Snouts in the trough of financial services continue....you would have thought that Sanders and Kell would have their fill by now, but the gluttony is endless.
To be judged by either of these individuals is an insult.
Yes, every time we see a picture of Sanders he is even more obese! Kell must have a tape worm.
1. Who died and made Adviser Ratings the Industry regulator?
2. I think the Kell record speaks for itself and yet he gets a gig
3. Another business leaching off financial planners. Once we are all gone their is going to be a lot of unemployment and businesses going broke.
I strongly suggest all financial planners have their details removed from this insulting and degrading website as soon as possible. It is easy to do. No other professionals flaunt themselves on websites like this. How do you think it looks to the public? Plus, does anyone seriously think Peter Kell is a good judge of a good financial planner. This is the man appeared on the ABC and issed a press release claiming 43% of life insurance advice is against the law without mentioning the research was based on a sample of suspected churners. The man has zero credibility in my book and I'm gobsmacked that any financial adviser worth their salt would want to be associated with him.
Classic stuff
Soon there will be more people hanging off advisers and not connected with the advice practice than actual advisers.
They should fear for their future earning potential.
Gees let’s go back to school ‘primary school’ and get a star . People trying to make money off the system. Tossers and fools.
Dealer Ratings! They say they will get information off the Money Smart web site and ASIC records and Credit Ratings Agencies then they will rate dealerships on superficial criteria. So a dealership with directors and ARs with "outdated" qualifications will get a ZERO RATING until they upgrade their quals. by sitting down alongside fresh faced ex High School Students who KNOW NOTHING!!!!. Give us a break, its a scam and NO ONE should participate. Blood sucking, greedy people ex "CHOICE". And when did anyone take notice of Choice? I am one of the many who refuses to be on the present Adviser Ratings and no way will my Dealer be on the new one. If my Dealer is added without permission and gets a Zero Rating imagine the big dollars for DEFAMATION and LIBEL! Yes, on second thoughts, just bring it on, says my Dealer!!!!
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It will get be like primary school - get a participation award, another star, clean up playground award. Your a winner, your a winner, every one a winner - unless you want to go to work.
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