Adviser feedback 31/08 – Should all advice givers be licensed?

Yes they should. Well if you look at any other profession not all GPs are surgeons and essentially an account may not have the exposure to investments, just because you can do a tax return it doesn’t give you a thorough understanding if the investment markets.

I think if they are a proper authority holder and if they can prove their position, and I don't mean you have to be a CFP if you have your diploma then you can give advice.

I mean an architect can design a building but can you trust them to build it?

I think accountants should be limited to giving taxation advice on peoples investments similarly as a solicitor can give advice on estate planning.

Its essential when giving a client a plan, that you don't have a one stop shop. You can't be all things to all people.

Danny Maher

Authorised representative

Morgans Financial Planning

I believe all advice givers should be licensed. This then gives the public assurance that there is competency in the advice, and would also prove that they at least went through the right processes.

There should at least be some sort of examination to say they can give advice.

If I didn't know someone was authorised to give advice I would ask to see to a certificate or something. If I was a member of the public I would want to know how long they had been in business and their client history.

But in saying that, I don't think that the accreditation has to be a diploma in education. I just mean I don't think that a motor mechanic or a real estate agent, that type of area, can give that advice without credentials.

Ron Board

Principal

Financial Independence Australia

Of any advice that is given there should be an explanation or demonstration to the person/client including the persons capacity of giving advice.

At the end of the day, the person receiving the advice should some how know whether they have been given the right level of advice.

I do believe that people should be licensed to some extent to give some advice, more so that the client understands what depth or extent of knowledge he/she is receiving. I don't believe professionals outside the financial planning or finance region should be allowed to provide financial advice.

Phillip Thompson

Superannuation manager

King Financial Services

In an industry that is striving to become regarded as a profession to have double standards for licensing is a step backwards not forward.

All providers of financial advice should be licensed and regulated in the same manner.

This provides the investing public with a level of comfort and importantly removes a source of potential confusion when looking for an adviser. From an industry perspective it helps to create barriers and benchmarks for those wishing to become advisers and lastly it creates a much simpler system for the regulators to manage.

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Corinna Dieters

Chief Executive Officer

Accent Investment Services Pty Ltd