Wholesale advice providers not ‘planners’
There is a risk of consumer confusion eventuating if people providing wholesale financial advice are permitted to call themselves "financial planners" or "financial advisers", according to the Association of Superannuation Funds of Australia (ASFA).
ASFA chief executive, Pauline Vamos, has pointed to the potential problem in her organisation's submission responding to the Treasury's discussion paper on lifting professional, ethical and education standards in the financial service industry.
The ASFA submission points to the fact that, under the Government's proposed arrangements, people providing so-called "wholesale advice" would not need to meet higher education and training requirements, but would be able to continue calling themselves "financial planners" or "financial advisers".
"This may lead to consumer confusion," the ASFA submission said. "We recommend that further consideration be given to the labels applicable to those people providing financial advice only to wholesale clients and who do not meet the proposed education and training requirements."
Elsewhere in its submission, the ASFA argues that advisers providing intra-fund advice should not be required to have the equivalent qualifications of those providing comprehensive advice.
"It should be noted that advisers who provide intra-fund advice are very much restricted by section 99F of the Superannuation Industry (Supervision) Act 1993 in the type of advice they can provide," it said. "The required qualifications for such advisers should relate to the areas of advice they are permitted to provide."
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