Standards Australia seeks comment on new standard
Standards Australia is building a new standard for Australian financial planners that addresses processes, ethics, competencies and experience, and is seeking public comment on the recently released draft version.
The most significant change proposed to date is in the area of conformity assessment, with the Australian committee proposing that first and second party certification be excluded as conformity assessment options in favour of third party certification.
The standard combines comments from members of the public, industry and government with aspects of the international ISO Standard, in order to develop a refocused standard relevant to the unique Australian regulatory environment and consumer.
According to David Williams, chair of Standards Australia’s Personal Financial Planning Committee: “Rather than simply adopting the international ISO Standard, the Australian committee has worked towards incorporating aspects of the ISO Standard into an Australian Standard, with appropriate improvements … to afford better protection to consumers.”
He said one of the reasons for the development of the uniquely Australian Standard is “the pace of change in the Australian financial industry is rapid”, and that it “provides an industry-owned, flexible framework to assist practitioners to provide quality personal financial planning services in Australia”.
“Having an Australian standard provides an arms length framework against which all other marks and requirements can be positioned both domestically and internationally,” Williams said.
“Also, since there is now an International Standard for financial planning, it is vital that the local industry responds to it. Having an appropriately enhanced Australian standard ensures that there is no potential for domestic misuse of the International Standard.
“The work we are doing demonstrates how the international standard for personal financial planning can be adapted to harmonise with existing national frameworks,” Williams said, while indicating that Australia is acknowledged as a leader in developing standards for financial planning.
Standards Australia is encouraging public comment from industry, government and consumers before June 12, 2007.
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