FPA hopes for ‘enshrinement’ bill this week
The Financial Planning Association (FPA) is hopeful the Federal Government will this week introduce legislation to the House of Representatives legally enshrining the term "financial planner/adviser".
FPA chief executive Mark Rantall has acknowledged that the policy timetable is fast running down and that he would prefer the legislation be introduced to the Parliament this week rather than during the busier and more problematic Budget sitting.
While the Federal Opposition has said it is opposed to enshrining the term, it is not expected to reverse any legislation once it is in place.
Commenting on the issue, Rantall said it was a fundamental public confidence issue.
"Only one in five Australians currently get financial advice, and some of this is due to consumers not knowing who to trust," he said. "Consumers deserve the right to differentiate between a qualified, professional financial planner and anyone who happens to hang out a shingle calling themselves a financial planner."
He said the FPA had long called for ‘truth in labelling', and the legislation from the Government represented a response to those calls."
Rantall pointed out that, currently, under the Corporations Act 2001, there was no constraint on individuals calling themselves financial planners irrespective of their training, competence, and even licensing.
"Whilst FPA members hold some of the highest educational and ethical standards in the industry, there are those in the industry who call themselves financial planners but are seemingly unaware of the specific competency, training, licence, professional standing and services provided," he said.
Rantall said the legislation, when passed, would put a stop to those bad apples who had misled the Australian public and tarnished the profession by wrongly using this title ‘financial planner/adviser'.
Recommended for you
A financial advice firm has been penalised $11 million in the Federal Court for providing ‘cookie cutter advice’ to its clients and breaching conflicted remuneration rules.
Insignia Financial has experienced total quarterly net outflows of $1.8 billion as a result of client rebalancing, while its multi-asset flows halved from the prior quarter.
Prime Financial is looking to shed its “sleeping giant” reputation with larger M&A transactions going forward, having agreed to acquire research firm Lincoln Indicators.
An affiliate of Pinnacle Investment Management has expanded its reach with a London office as the fund manager seeks to grow its overseas distribution into the UK and Europe.
