Legislation setting professional standards for financial advisers will be introduced to Parliament this month, Financial Services Minister Kelly O’Dwyer says.

It will follow further consultation with industry and consumer groups. However, the House of Representatives sits for this week only, then is not back until the second week of November.

The bill will include compulsory education requirements; supervision requirements for new advisers; an industry code of ethics; an exam that will set a common benchmark; and an ongoing professional development component.

The standards will take effect on January 1 2019, but current advisers will have until 2021 to pass the new exam and 2024 to reach degree-equivalent status.

The legislation will also establish an independent financial advice professional standards board, with a chairman and directors appointed by the Finance Minister.

The board will be funded by the major banks and AMP. Once established, an industry funding model will be established.

“This independent standards body will raise minimum standards in the financial advice industry and improve public confidence in the sector,” Ms O’Dwyer said.

The Financial Planning Association (FPA) has welcomed the legislation. Head of Policy and Government Relations Ben Marshan says it is in line with the association’s push for higher standards.

“The FPA has been advocating for higher minimum education, training and ethical standards in financial planning for many years,” he said. “The reforms will provide financial planners with clarity and an appropriate transition time to adjust to the new professional landscape.”

Mr Marshan says the FPA will continue working closely with the Government to ensure the reforms meet consumer needs and members are supported through the transition.

“The most important thing is we work together to build consumer trust and confidence in the financial planning profession.”