The FPA says however that the definition of ‘personal financial advice’ must have the provision of financial advice at its core and not be based around financial product(s) or the class of product.
It believes the regulatory costs of providing personal advice must help improve the affordability of advice for consumers by ensuring there is a level playing field for the regulatory requirements and standards imposed on advice providers.
Further, the regulatory environment should facilitate the provisions of simple personal financial advice to clients in an affordable manner by financial planners and financial planning practices, as well as non-relevant providers, to meet consumer demand.
The FPA says regulatory requirements must:
- build consumer trust in the different types of advice services and benefits through high standards, appropriate education and training, effective requirements and accountability, and transparent regulation of the provider, applied consistently across the financial services sector
- reduce input costs into the provision of financial advice
- facilitate an increase in financial advice providers (through career pathways/education/professional year/retention/etc.)
- ensure active accountability for all financial advice providers
- maintain consistent consumer protections across the industry
- unify the industry, and
- be fair and equitable.
The FPA believes the impact on competition in the financial advice market must be a key consideration when examining the current legal obligations and making recommendations for regulatory change and must not provide a structural competitive advantage to one type of provider over another.
Finally, the FPA says only ‘relevant providers’ who meet the professional standards should be legally permitted to use the terms financial planner and financial adviser and like terms.