Educational qualifications a late addition to adviser register
The Federal Treasury has signalled that the new comprehensive register of financial planners will not immediately encompass educational qualifications and professional association membership — two items which will come after the amendment of principal regulations.
However the Minister for Finance and Acting Assistant Treasurer, Senator Mathias Cormann, has told Money Management he expects the two issues to be included by March, 2015, consistent with his original undertakings.
The later inclusion of both planner educational qualifications and professional association membership has been revealed in a Treasury exposure draft and explanatory statement with the Treasury saying that while the new register is intended to build on the existing ASIC register some changes will be added later.
"The new register will build from the existing registers, and also contain information informing consumers of an adviser's experience, their recent work history, the eventual owner of licensee they work on behalf, as well as information about whether ASIC has banned, disqualified or obtained enforceable undertakings in relation to them," the explanatory statement said.
"It is intended that the register will, in time, also contain educational qualifications and professional association membership information. This would require further amendments to the Principal Regulations," it said.
In other words, the inclusion educational qualifications and professional association membership is not included in the Corporations Amendment (Register of Relevant Providers) Regulation 2014 legislation, and will require more detailed legislative drafting based on the lifting of educational qualifications.
The Minister for Finance and Acting Assistant Treasurer, Senator Mathias Cormann has criticised reports that the absence of the educational and professional association memberships represents a watering down of the register.
He said that, at present, adviser's minimum qualification requirements are governed by ASIC regulatory guidance 146 (RG 146) and that the Government was working with all relevant stakeholders on efficient and effective ways to lift professional, ethical and educational standards across the financial advice industry.
"As we progress relevant improvements, in particular to educational standards, those improvements will immediately be reflected as appropriate within the structure and operation of the financial adviser register," Cormann said.
Industry stakeholders have been given until 17 December to comment on the Treasury draft.
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