Bad advice created FASEA says O’Dwyer
The Government pursued the implementation of the Financial Adviser Standards and Ethics Authority (FASEA) regime because of repeated instances of just bad advice, according to the Minister for Revenue and Financial Services, Kelly O’Dwyer.
Addressing the annual Australian Securities and Investments Commission (ASIC) Forum in Sydney, O’Dwyer pointed to the fact that FASEA would soon be releasing its next round of guidance and defended the process the Government had put in place.
She said it was important to remember why the reforms were necessary – “repeated instances of inappropriate or just plain bad advice has significantly eroded trust and confidence in the financial advice sector”.
“Every adviser has a role to play in rebuilding that trust, and these new educational requirements are a critical step towards professionalising the sector,” O’Dwyer said.
“Ultimately, the professionalisation of the advice sector will be in the best interests of all advisers, existing and new, because it will ensure enduring consumer trust and confidence in the financial advice sector.”
Recommended for you
A financial advice firm has seen a weekly decline of 10 advisers, with all moving to a new licensee, while Centrepoint Alliance continues its “growth story”.
Sequoia Financial Group has seen a top-level reshuffle as the chair of the board, John Larsen, steps down after five years in the position.
As statements of advice move into the rear-view mirror, Vital Business Partners explores how financial advisers are adopting innovative documentation strategies.
Adviser Ratings has explored whether there is a financial benefit to advice firms seeking to have a specialised client base in terms of client assets and fees charged.
