FPA differs with Coalition on enshrining term 'financial planner'
The Financial Planning Association (FPA) has defended the need for the term 'financial planner/adviser' to be enshrined in law, despite suggestions by the Federal Opposition that such a move may be unnecessary and will add another layer of bureaucracy.
Responding to comments by the Shadow Assistant Treasurer, Senator Mathias Cormann, that the Coalition would not necessarily support legislation the Government has promised to introduce this year, FPA chief executive Mark Rantall said enshrinement of the term "will ensure consumers have an extra safeguard from unqualified operators who can call themselves financial planners".
Rantall acknowledged that the term 'accountant' was not enshrined in law, but argued that financial planning was a young profession with members who were dealing with people's financial livelihoods.
"Enshrinement of the term financial planner passing into law will help get rid of those who are not qualified or ethically worthy of using the title financial planner," he said.
Senator Cormann suggested that sufficient safeguards existed under the existing Australian Financial Services Licensing regime and noted that it was possible for the FPA to promote the benefits of dealing with planners who were members of the organisation.
However Rantall said that while FPA members hold educational and ethical standards higher than those required by law, "there remain those in the industry who call themselves financial planners but fail to sign up to the specific competency, training and professional standing required".
He said the Government's promised legislation represented a great win for consumers and financial planners alike by taking a further step towards putting a stop to those operators who had misled the Australian public and tarnished the profession by wrongly using the financial planner title.
Recommended for you
ASIC has released the results of its first adviser exam to be held in 2025, with 241 candidates attempting the test.
Quarterly Wealth Data analysis has uncovered positive improvements in financial adviser numbers compared with losses in the prior corresponding period.
Holding portfolios that are too complex or personalised can be a detractor for acquirers of financial advice firms as they require too much effort to maintain post-acquisition.
As the financial advice profession continues to wait on further DBFO legislation, industry commentators have encouraged advisers to act now in driving practice efficiency.
