Deborah Kent

The Association of Financial Advisers (AFA) has supported last week’s announcement by the Government on the establishment of an enhanced register of financial advisers, saying that it is another step forward in enhancing consumer confidence in financial advice.

AFA National President, Deborah Kent, said the register is in line with the AFA’s strategy of providing great advice to more Australians; will better equip consumers to choose a professional financial adviser and will provide them with increased confidence to make this important decision.

“The register is a great outcome for consumers. It is a necessary tool that can be easily accessed and relied upon as a source of information on the qualifications and experience of their financial adviser,” she said. “We applaud the prompt turn-around time announced by the Government this morning.”

Ms Kent said the inclusion of an adviser’s professional membership and qualifications on the register is a positive move.  “Consumers will now be able to recognise the importance of professional membership of an association like the AFA, and understand that our members are accountable to the AFA Code of Conduct. This will enhance confidence that the adviser is working in their best interests.”

The register also recognises the different paths to professional development taken by many advisers, including the AFA’s Fellow Chartered Financial Practitioner or Chartered Life Practitioner.  “We strongly support where the Government has landed on this issue,” Ms Kent said.

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John Brogden

The Financial Services Council strongly supports the Register of Financial Advisers announced last week by the Government. The register has significantly expanded the initial proposal to include details on financial advisers and their employers which has not previously been available.

John Brogden, CEO of the FSC said: “The Government is delivering on its commitment to increase information to consumers about financial advisers.”

“The register will provide consumers with the relevant and important details of financial advisers so they can make informed choices.”

“It is critical that consumers know as much as they can about the adviser they are considering engaging. We are pleased that the register will disclose the ultimate owner of the licensee and the parent company. This will ensure full transparency,” Mr Brogden said.

“Consumers will also be able to use the register to find out if an adviser has been subjected to bans, disqualifications or enforceable undertakings.”

Mr Brogden also said: “Greater transparency and disclosure will help to build trust and confidence in the financial advice industry.”

“We need more Australians to get financial advice. Currently only 20 per cent of the population seeks financial advice,” he said.

“Australians are living longer than ever before and they need to know that the savings and investments they make will sustain them throughout their lives. Good financial advice will help to achieve this.”

“Significantly improved adviser education, increased ASIC powers and greater disclosure of experience and ownership are needed to increase public confidence in financial advice,” Mr Brogden said.

“The register is an important service to consumers which the industry will be pleased to fund.”

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Andrea Slattery

The SMSF Professionals’ Association of Australia (SPAA) supports the Federal Government’s decision to introduce a register of financial advisers as it should provide practical assistance to consumers wanting financial advice they can trust.

SPAA CEO/Managing Director Andrea Slattery says: “We support the register on the basis it records advisers who are authorised representatives, as well as employee advisers, and gives consumers ‘meaningful information’ to identify skilled financial advisers.

“A register should also help ASIC and consumers spot ‘sharp practices’ in situations where unprofessional advisers deliberately move around the financial planning industry with the simple aim of avoiding detection.”

Slattery was responding to an announcement today by the Minister for Finance and Acting Assistant Treasurer, Senator Mathias Cormann, who said that a register of financial advisers would begin by March 2015.

Slattery says the fact that specific information is required on the register, such as an adviser’s areas of specialisation, relevant qualifications, professional accreditation and professional association membership, such as SPAA specialist accreditation, is critically important.

“It will record those who have specific SMSF knowledge by recognising financial planners who are SPAA specialists and in the top tier of professional SMSF advisers.

“It is encouraging for the industry to see recognition of qualifications and skills at a level over and about those necessary to meet RG 146 that doesn’t recognise the specialist skills required of a financial adviser providing SMSF advice.”

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Andrea Slattery

SPAA is encouraged by the Government’s move to improve professional standards in the financial planning and retirement sectors, says the SMSF Professionals’ Association of Australia (SPAA) CEO Andrea Slattery.

She says the amendments, which the Senate passed on 15 July, is another step along a long path that will hopefully settle the turmoil and confusion of the past few years around the FoFA reforms and result in a more professional, transparent and knowledgeable advice community.

“We will keep a watching brief on all developments as they relate to the Government’s amendments to ensure practices do not develop that distort the provision of advice and make it more difficult for some sectors in the financial planning industry.”

SPAA has always advocated for increased competencies and professionalism in advice. As such the Government’s decision to establish an enhanced public register of financial advisers, announced by the Finance Minister Senator Mathias Cormann yesterday, also has SPAA’s endorsement as it will allow consumers to be more informed about their choices.

“This register will assist in uncovering those ‘pop up’ advisers who are involved in sharp practices where they move from licensee to licensee within a short time frame without any true commitment to unsuspecting clients.

“It demonstrates that the government has taken notice of the recommendations of the Senate Economics Committee and the observations of the Financial Service Inquiry to raise the standard of advisors’ advice to ensure there is an improvement in their professional competencies.

“SPAA has been an advocate in improving professionalism in financial services and SMSFs and looks forward to the development of a high quality and meaningful register.  We trust that the register will provide useful information that is easy for consumers to understand and access,” she says.

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Brad Cooper

BT Financial Group Chief Executive Brad Cooper has called for a radical overhaul of consumer access to information on Australia’s financial planners.

“We think all Australians should have access to as much information as possible to help them make informed choices about the quality of financial planners across the country,” Mr Cooper said.

“We believe there are a range of factors that determine whether a financial adviser is right for them. Education is critical but assessed in isolation does not provide a full picture of the quality and suitability of an adviser.

“For some time we have advocated that access to meaningful information on financial planners will help improve the transparency that Australians deserve. We have long supported the creation of a public register that would encompass the education, years of experience, employment history and areas of expertise and annual certification results for every financial planner in Australia.

“Most importantly we would like to see a customer rating for all advisers that would be widely accessible by all Australians.

“A common industry standard covering advice audits is also required to support the register.

“It was especially pleasing to see the Government’s initiative to establish a working group to examine the creation of such a register.”

Mr Cooper said he was pleased to see other industry participants supporting elements of this agenda.

“To be effective, our aim is to have a collective effort from across the industry for this initiative.”

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Brad Fox

The establishment of a central register of financial advisers, which was included in the Future of Financial Advice (FoFA) amendments deal announced last week by the Coalition, with the support of Palmer United Party (PUP), will benefit both consumers and Association of Financial Advisers (AFA) members.

AFA CEO, Brad Fox, said the creation of a detailed register is an excellent step forward in helping Australian consumers identify and engage with AFA members and other professional financial advisers.

“Research into consumer understanding of financial advice identifies a number of barriers to seeking financial advice. One of those barriers is identifying who a professional adviser is and who is not, which includes identifying whether an individual has the legal authority to provide personal financial advice,” Mr Fox said. “A central register will simplify the selection process for consumers and help ensure they are getting advice from a professional adviser.”

Mr Fox said consumers should be able to use this register to understand that they are seeing, or going to see, an adviser that can provide the expertise they need.

“We have seen examples where unqualified people have held themselves out to be a financial adviser,” he said “Only people with appropriate qualifications, experience and legal authority will be on the register. This will increase the protection available to consumers.”

While the exact details of the content that will be included on the register are not yet finalised, the AFA expects that it will include professional association memberships and any professional designations held by an individual adviser.

“We believe that a member of the public looking at this register will want to see the qualifications held by the adviser including any designations they may have such as the AFA’s Fellow Chartered Financial Practioner (FChFP) or Chartered Life Practioner (ChLP), as well as their AFA membership, meaning they are therefore accountable to the AFA Code of Ethics,” Mr Fox said. “In this way the consumer gains added assurance their adviser is acting professionally, and advisers will see further benefit from joining the AFA. Professional association membership is an obvious and important point of difference.”

Mr Fox said that the rebuilding of consumer trust in financial advice will need to overcome several hurdles, but the adviser register is a step in the right direction. “Transparency builds trust, and the register, along with the other requirements suggested by PUP that explicitly require an adviser to ensure the client is aware of their rights, and the adviser’s responsibility under the Best Interests Duty, shows FoFA has moved in the right direction.”

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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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John Brogden

The Financial Services Council said yesterday that the establishment of an enhanced public register of financial advisers will increase transparency for consumers.

John Brogden, CEO of the FSC said: “The register is a sensible and practical move to ensure consumers can check the credentials of advice providers.”

“This will provide an additional security check for consumers,” he said.

“We look forward to working with the industry group on the development and implementation of this important measure.

Mr Brogden also said: “The improved FoFA regime will allow more accessible and affordable quality advice to millions more Australians whilst maintaining the highest level of consumer protection in the world.”

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