Advice reformation to pave path to professionalism
There will be no easing off of the pressure being placed on the advice sector in the year ahead, with minimum education standards coming into effect, a financial services broker warns.
Connect Financial Service Brokers chief executive, Paul Tynan warned that the advice sector will remain under the microscope in 2016, with other industries eagerly monitoring the professionalisation of advice.
He told advisers to forget about the ‘good old days', with the Future of Financial Advice (FOFA) reforms, the Life Insurance Framework and education requirements coming into effect in 2016.
"The advice sector is moving to a professional footing and ongoing reform that reinforces and supports this framework is the endeavour of the regulators and industry bodies," he said.
"At the end of all this change, financial advisers will be highly regarded experts and their services paid for in the same manner as those of the accounting, legal, etc… professions.
"The financial advice sector is seen as the pioneer for change with other sectors such as mortgage, real estate, etc… taking note as they will soon be dealing with similar changes a lot sooner than many expected".
Tynan added that Australian Financial Services Licensees and their representatives needed to be registered with the Tax Practitioners Board, if they meet the transitional or standard eligibility requirements, by 1 January 2016, if they wish to provide tax advice in the future.
AUTHOR
Nicholas O'Donoghue
Recommended for you
Money Management examines the share price of financial advice licensees over one year to 31 March, with M&A actions in the final quarter having a positive effect for two licensees.
A $3.5 million settlement for victims of Melissa Caddick has been approved by the Federal Court following an initial agreement last December.
The Reserve Bank of Australia has delivered its first rate decision since the introduction of a new board structure last month.
Digital advice provider Otivo has launched an interactive tool, powered by artificial intelligence and Otivo’s own advice engine, to help answer client questions.
