FPA rules on right track for CLERP 6: Hockey
The FPA's code of ethics and rules of professional conduct have gone a long way towards meeting some of the reforms in CLERP 6, says Fi-nancial Services Minister Joe Hockey.
The FPA's code of ethics and rules of professional conduct have gone a long way towards meeting some of the reforms in CLERP 6, says Fi-nancial Services Minister Joe Hockey.
"I think many of the regulatory reforms contained in CLERP 6 have al-ready been addressed to some extent by the FPA and I commend them for that," he said, speaking at a Melbourne Chapter FPA briefing.
Planners meeting these requirements will satisfy Hockey's definition of a good financial service provider. While he sees them as being good on sales, this ability sits on top of a solid base of competence and skills.
"It is someone I can be confident knows what they are doing, who will tell me why they are recommending I do something and who will give me a written record of what has been done," he says.
"It is the kind of professional that I would be happy to do business with because they are delivering a quality service."
Because of most planners meeting some of the requirements of CLERP 6, Hockey says there probably won't be too many changes they will have to make to their businesses.
"More importantly, the new regime will force slacker industry col-leagues to raise their game."
Hockey believes the benefits of CLERP 6 will enhance consumer protec-tion and improve perception of the professionalism of the financial services industry.
"This will lead to increased consumer confidence and increased confi-dence leads to increased participation, which is good for the whole industry," he says.
Hockey also gave the first indications of what CLERP 7 would contain at the Melbourne briefing. Its aim will be to cut the paper compli-ance for the industry and will give ASIC greater use of communica-tions technology.
"CLERP 7 will lead to a fundamental overhaul and review of the large range of paper-based documents that the law still requires companies to lodge," he says.
The government is still trying to get CLERP 6 and other financial measures through the Senate so it might be some while before CLERP 7 becomes a reality.
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.
