Momentum grows on separating product from advice

FPA/ASIC/financial-planning/financial-planning-association/FOFA/commonwealth-financial-planning/financial-advice/financial-planners/australian-securities-and-investments-commission/

20 May 2014
| By Staff |
image
image
expand image

The Financial Planning Association (FPA) will on Thursday seek to convince the Senate Committee reviewing the Australian Securities and Investments Commission (ASIC) of the value of a process capable of definitively separating financial advice from product sales.

Having cited the latest Australian Securities and Investments Commission (ASIC) action against Commonwealth Financial Planning and Financial Wisdom as something giving impetus to the FPA's moves, Rantall said he believed it was important that consumers were made fully aware of the differences between product sales and the provision of advice.

He said the FPA would therefore be putting forward a 10-point plan to the Senate Economic Committee to address the situation.

Money Management understands that the essence of the FPA's proposal is that the provision of financial product information should be regulated with consumers receiving a warning in the same terms that apply to the provision of general advice.

This approach would then build on the FPA's initial submission to the Senate Committee within which it said that such warnings "should make it clear that the information is not financial advice, it is information about a financial product or a class of financial products".

Rantall said that he also believed that the legal enshrinement of the term "financial planner/adviser" need to be central to the differentiating between those providing information relating to products and financial planners providing strategic financial advice.

The FPA has already argued within its submission that licensing and all the other forms of regulation which currently apply to general advice should apply to financial product information and that the term ‘financial planner/adviser' "should be defined by legislation, in order to prevent individuals who offer financial product information/factual information from representing themselves as financial planners or financial advisers".

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

So we are now underwriting criminal scams?...

2 months 3 weeks ago

Glad to see the back of you Steve. You made financial more expensive, not more affordable as you claim, and presided ...

2 months 3 weeks ago

Completely agree Peter. The definition of 'significant change is circumstances relevant to the scope of the advice' is s...

4 months 4 weeks ago

ASIC has suspended the Australian Financial Services Licence of a Melbourne-based financial advice firm....

1 week 5 days ago

The corporate regulator has issued infringement notices to three AFSLs whose financial advisers provided personal advice to a retail client while unregistered....

2 weeks 3 days ago

ASIC has released the results of its first adviser exam to be held in 2025, with 241 candidates attempting the test....

3 weeks 1 day ago

TOP PERFORMING FUNDS

ACS FIXED INT - AUSTRALIA/GLOBAL BOND