FPA urges consideration of Self-Regulatory Organisations


The Financial Planning Association (FPA) has sought to press the case for so-called Self-Regulatory Organisations (SROs) in its submission lodged with the Government's Financial System Review.
The submission points to overseas experience with SROs and argues that the Government's inquiry should consider the role and implementation of SROs in Australian financial regulation.
"Without recommending particular policy options at this early stage in the inquiry, it is important and timely to reconsider the role of SROs, as depending on their scope, structure and responsibilities they can deliver different economic, social and cultural outcomes," the FPA submission said.
It said their most valuable characteristic was their potential to develop and promote ethics, professionalism, and transparency — "all of which would serve the financial sector and the national interest".
The FPA submission has also argued for clarity and guidance around what the inquiry regards as constituting the "end user" of the Australian financial regulatory system in circumstances, in situations where the inquiry terms of reference did not seem to contemplate the competing interests of stakeholders in the system.
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.