Financial advice associations are keen to be represented on the Future of Financial Advice expert advisory panel, which is expected to be set up in a few months time.
The expert advisory panel was one of the recommendations made in the reforms paper, which will be tasked with reviewing professional standards for advisers. The Treasury’s consultation process has begun, but the Financial Planning Association’s acting chief executive, Deen Sanders, said it was likely that the panel would be formed following deeper consultations in July and August.
“We do anticipate being on that panel, and we have already had discussions with the Treasury and [Minister for Financial Services Chris Bowen] as to our interest in the process,” Sanders said.
Association of Financial Advisers chief executive Richard Klipin said the group was also keen to be part of any of the consultation or industry panels “to represent the views and voice of our members”.
“We’re looking forward to some of that process commencing reasonably soon,” he added.
Sanders said there were uncertainties about who would look after the panel, whether it would be appointed by the Australian Securities and Investments Commission or the Treasury. He said at this stage it seemed that the panel would be responsible for the establishment of professional standards and educational requirements for participation in the financial planning industry.
“If that’s the case, then obviously professional associations and only appropriately capable and competent participants should be on the panel. To our mind it should be more about getting to the right outcome, rather than just being an open stakeholder-style approach,” Sanders said.
“We have pretty clear ideas what the panel should do and should be — to our mind it should be drawn from the professional association community.
“What’s important to remember here is that this is an expert advisory committee for the entire financial advice community — not just financial planners and advisers, but also insurance brokers, stock brokers and everyone captured under the Corporations Act. The consequence is that this is a large group and has a very big field of activity.”
Both Sanders and Klipin said they have had good experiences with the Treasury and the consultation process thus far, but acknowledged the reforms were causing stress among members.
“Part of the danger is that people keep predicting the outcome of something in advance of any consultation process,” Sanders said. “It’s going to be a frantic three or four months of consultation on these issues.”
Klipin said the long consultation period was welcome as it would enable the Treasury to achieve sensible and workable outcomes for the industry.
