FINSIA backs national adviser exam
Australia's financial advice sector needs all planners — regardless of experience — to sit a national exam to improve consumer confidence, the Financial Services Institute of Australasia believes.
FINSIA voiced its support for a national exam as part of a submission to Treasury.
FINSIA chief executive, Russell Thomas, said the exam would play a critical role in boosting professionalism within the industry.
"The community understands the national exam as an independent test of competence," he said.
"An examination provides assurance that everyone in the industry, no matter where that adviser has previously studied, is up to a professional standard.
"We have been particularly vocal in our support for the genuine desire among financial institutions to address the serious concerns that have been raised about the quality of financial advice and products."
FINSIA warned that the use of new technology was likely to cause "increasing levels of disruption in the delivery of financial services to the client".
"With this in mind, we need to be cautious of only solving for yesterday's problem and taking a retrospective approach to regulation," he said.
"Instead, the industry needs to be thinking about new digital platforms that will be offering tailored, lower cost financial advice. It really should be about access to quality financial advice, rather than specific business models that are currently in place."
AUTHOR
Nicholas O'Donoghue
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