FPA responds to PJC adviser standards inquiry

In the submission, FPA chief executive Mark Rantall said it focuses on the need to increase minimum education standards and requirements for those providing personal financial advice to consumers.

“The PJC Inquiry, designed to examine financial planner education, professional standards and ethics, and recognition of professional bodies, will help advance the profession of financial planning,” Mr Rantall said.

The FPA has welcomed the opportunity to put its views forward on what specifically this advancement should look like in terms of minimum degree qualifications and general advice being renamed “general or product information”.

“When all financial planners are members of a professional association, when all financial planners are listed on a public register, when more financial planners carry the world class CFP designation, we are in a better position to uphold trust in our industry,” Mr Rantall said.

“When implementing new standards, it’s important we lead for the future and respect the past,” Mr Rantall said.

“We therefore consider it important to introduce an appropriate transition and pathway options for existing advisers and an approved degree requirement for new advisers from 1 January 2018,” he said.

Mr Rantall highlighted recent ASIC enforcement actions to demonstrate the clear distinction between financial planners who are “members of a professional association” and those who are not.

“Review of data collected since 2009 on ASIC enforcement action concerning individuals in relation to financial advice shows that FPA members represent significantly less than five per cent of the overall ASIC enforcement action each year,” Mr Rantall said.