While CPA Australia and other groups have been advocating for change, the government remains focused on implementing the recommendations of the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry. Firstly, the Financial Adviser Standards and Ethics Authority FASEA , established in April , requires existing advisers to meet new education standards, complete an exam and adhere to a code of ethics.
According to Adviser Ratings, more than financial advisers left the sector in , and this has resulted in the lowest number of advisers in Australia since December In addition to having to meet its new education standards, FASEA requires newcomers to complete a year of mentoring under a registered adviser.
The costs themselves can be a barrier to getting advice. If things continue, everyday Australians are not going to be able to access affordable advice. Waller believes having education standards, a code of ethics and other special requirements are great principles and should be in place, especially for newcomers. Wyatt qualified in and has 47 years of practical experience as an adviser. While the annual decline in adviser numbers was about 14 per cent higher than rates, it was 34 per cent lower than It also found buoyant demand for advice, notwithstanding the slight decline in advised consumers.
Thirty per cent of unadvised consumers indicated they will require the services of an adviser in the future, according to a survey conducted by Adviser Ratings in January.
Trust in financial advice has increased from 35 per cent in to 48 per cent in The Australian Securities and Investments Commission is currently considering industry proposals to facilitate more cost-effective and scaled forms of financial advice.
Skip to navigation Skip to content Skip to footer Help using this website - Accessibility statement. Companies Financial Services Financial planners Print article. We are very excited about this tool and we feel it has the potential to really close the information gap that seems to prevent a consumer from taking that next step.
We will see…. But of course more needs to be done. How do we, for example, encourage good news media stories about financial advice for consumers to read?
Traditional media will report the news and scandals. But it is our job to continue to have a relationship with the media — backgrounding and educating them so they are able to accurately report and obtain balanced views. But equally our role is to help promote the work our financial planners do every day in making a meaningful positive difference in the lives of 2.
The Banking Royal Commission identified three key areas of reform required to complete our transition into a profession.
Second, is poor advice as a result of the conflicts of interest. The Commissioner stated that other professions are not so pervaded by conflicts of interest and do not have such a high tolerance for the continued existence of conflicts of interest. He went on to say that until something is done to address these conflicts, the financial advice industry will not be a profession.
Thirdly, is the disciplinary system for financial planners. One hallmark of a profession is the existence of a credible and coherent system of professional discipline where the ultimate sanction is expulsion from the profession. The Commissioner notes that the existing disciplinary arrangements for financial planners are fragmented, and hampered by inadequate sharing of information.
The Sydney Morning Herald. By John Collett July 17, — Save Log in , register or subscribe to save articles for later. Normal text size Larger text size Very large text size. There is a relatively small number of advisers coming into the industry to replace them. License this article. Financial planners.
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