National register needs verification at source
Verification at the source for things like professional qualifications and previous employment is the most reliable way to assure quality in the national register of financial advisers.
That is the opinion of the head of wealth at data analytics company Veda, Mark Hoven, who argues that if employers have been going to the source for bankruptcy and police checks, they should do the same for educational and employment background.
"The fact this is not being done consistently is concerning, particularly given the potential fallout and reputational damage arising from false representation by advisers, or from businesses relying on previously collected documentation, which lacks veracity," Hoven said.
Businesses also have bear in mind complex licence and ownership structures of the financial advice industry, along with Australia's privacy laws, which necessitate multiple consents from advisers to do the verifications.
"Some organisations have significantly underestimated what's required to meet the immediate deadline and their ongoing obligations to ensure adviser information remains up to date," Hoven said.
The collection of information is very resource-intensive, but Hoven said businesses risk reputational damage if they do not provide accurate information to the register.
"Advisers and advice firms need to be ready for the scrutiny applied to that register since it's a public register. If there are any shortcomings on that register it's going to reflect badly on the business," he said.
The deadline for the register is 31 March, while the education and qualification information deadline has been extended to 31 May.
AUTHOR
Malavika Santhebennur
Recommended for you
ASIC has banned a former AFSL director after he failed to adequately address fees-for-no-service conduct by one of his firm’s representatives.
The Financial Advice Association Australia has appointed two new board members following two weeks of voting, as well as one re-elected member.
Advice licensee Bombora has introduced a board of six financial advisers from its national network to ensure industry voices are heard collectively on future decisions.
Technology firm Iress and investment manager Challenger have formed a strategic partnership to launch an adviser solution to better serve their retiring clients.
