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
AFCA has confirmed United Global Capital’s membership of the body will not be extended to accept further complaints, avoiding a repeat of the Dixon Advisory scenario.
Three of Australia’s largest financial advice groups have shared their thoughts with Money Management on whether they would include crypto on their approved product lists.
Shadow treasurer Angus Taylor has vowed to introduce a bill to legislate a raft of financial services reforms if the Coalition is elected.
Money Management examines the share price of financial advice licensees over one year to 31 March, with M&A actions in the final quarter having a positive effect for two licensees.
