Mark Rantall

The Financial Planning Association (FPA) welcomes last week’s announcement that the Government will establish an enhanced, industry-wide public register of financial planners.

Mark Rantall, CEO of the FPA, said: “Access to key information about planners will improve trust in financial planning. This register provides better consumer protection. When you go to a financial planner you have the right to know you can trust the person you choose. This is a big step in the right direction.

“The register will help people identify licensed financial planners with the best credentials. It will also help weed out bad apples and provide protection for licensees, employers and Australians seeking financial advice.

Public education

“Of course for the register to actually work consumers have to know why the information on the register matters, where to find it, and how to use it. For it to be fully effective it must be promoted.

“This means a joint public education effort by financial planning businesses, government and industry associations. We look forward to working with the Government and financial planning licensees to ensure that when people search for a planner they are able to find, and use, the register.”

FPA 10 Point Plan

“The register is an important advance for the profession of financial planning. This is in line with the call we made in May 2014 in our 10 Point Plan. It will also make it easier for consumers to find a planner with the right qualifications (CERTIFIED FINANCIAL PLANNER^®) and membership.

“Membership of a professional body such as the FPA, which has its own strict guidelines, qualification requirements and codes of ethical practice, forms a key factor in a planner’s registration status. Having this information means you can know the planner you are dealing with is someone who will act in your best interest and adhere to a code of conduct,” Mr Rantall concluded.

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Mark Rantall

The Financial Planning Association of Australia (FPA) continues to champion the need to change current education requirements within the financial planning profession, focusing heavily on this in its recent submission to the Parliamentary Joint Committee (PJC) Inquiry.

According to Mark Rantall, CEO of the FPA, the submission’s focus on increasing minimum education standards and requirements for those providing personal financial advice to consumers is a natural continuation of the aspirational, but achievable recommendations outlined in the FPA 10 Point Plan released earlier this year.

“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. We welcome the opportunity to put our views forward on what specifically this advancement should look like in terms of minimum degree qualifications to be a financial planner/adviser, recognition of professional bodies and General Advice being re-named ‘general or product information’.

“Australia’s largest institutions have recently stepped up and announced they will be lifting their education standards for the benefit of consumers, and the profession. This in in line with our 10 Point Plan to restore trust in the financial planning profession. Consumers deserve this and more, which is why getting the outcomes of this Inquiry right is important.

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

“We are committed to working with government, industry bodies, financial planners and consumers to ensure we live up to the expectations of our profession. 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 pointed to recent ASIC enforcement actions to highlight the clear distinction between financial planners who are members of a professional association and those who are not.

“Our 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 5% of the overall ASIC enforcement action each year – even though they represent nearly 50% of financial planners in Australia. From a professional stand-point and in the eyes of consumers, it should be clear then that being a member of a professional body with additional regulatory oversight of professional obligations is an obvious gold standard.”

The FPA’s full submission will be available to media following its publication by the PJC.

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Mark Rantall

The Financial Planning Association (FPA) welcomes the announcement from the Commonwealth Bank of Australia (CBA) about measures to improve adviser education and training, increase transparency in adviser quality and support the FPA 10 Point Plan.

Mark Rantall, CEO of the FPA said, “We recognise the strong move the CBA has made in its Open Advice Review program. It demonstrates commitment to deliver a fair and consistent outcome for customers.

“CBA has listened to industry feedback and acted,” Mr Rantall said.

“When all financial advisers are members of a professional association, we are in a better position to build a self-regulatory model under which all planners act in accordance with both regulation and a fully enforceable professional code that commands conduct above legal requirements.

“We remain committed to seeing the term ‘financial planner’ and ‘financial adviser’ enshrined in law, to protect both financial planners and the clients they serve,” Mr Rantall added.

The FPA also welcomed the appointment of a highly credentialed Chairman of the Independent Review Panel, for the recently announced CBA Open Advice Review program.

Mr Rantall said, “We look forward to further announcements on the appointment of appropriately qualified independent industry experts and client advocates. The CBA compensation process is essential to restore public trust in the financial advice industry. It is vital clients receive full and fair compensation in a timely manner. We believe this first decision is a step in the right direction and look forward to further detail.”

The FPA continues to support a collective forum to develop a response to the 61 recommendations from the ASIC Senate Inquiry.

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Mark Rantall

The Financial Planning Association (FPA) welcomes yesterday’s announcement that the Government will establish an enhanced public register of financial planners.

Mark Rantall, CEO of the FPA, said: “The Government’s commitment to a public register signals their support for a key part of our 10 Point Plan.

“An appropriate register will provide protection for consumers, enabling them to easily identify all licensed financial planners who have an agreed set of credentials. The register will also help weed out bad apples and provide protection for licensees, employers and ultimately the consumer.

“When you go to a financial planner you have the right to know you can trust the person you choose. This is a big step in the right direction.

“The register, along with the outcomes of the upcoming Parliamentary Joint Committee (PJC) Inquiry into financial planner education, professional standards and ethics and the recognition of professional bodies will help advance the profession of financial planning. And this is completely inline with the direction we advocate in our 10 Point Plan.”

“Membership of a professional body such as the FPA which has its own strict guidelines, qualification requirements and codes of ethical practice should also form a key factor in a planner’s registration status.This gives consumers confidence that they are dealing with someone who will act in their best interest and is required to adhere to a code of conduct,” Mr Rantall concluded.

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