The drive to raise the financial planning sector’s transparency is well under way, with the Australian Securities and Investments Commission (ASIC) devising a model for more open fee disclosure and the major trade associations defining what people should look for in a financial planner.

The associations, the Financial Planning Association (FPA) and the Investment and Financial Services Association (IFSA) have also supported the fee disclosure model unveiled by ASIC Executive Director Financial Services Regulation Ian Johnston.

The drive to raise standards follows savage criticism several months ago when many planners were found by a joint ASIC/Australian Consumers Association survey to be less than straight about their financial interest in the transaction.

IFSA and the FPA have jointly printed a brochure advising consumers about how to choose a financial planner. Dubbed “Six steps towards sound financial advice and your rights as a consumer,” the brochure tells people the questions to ask. It’s part of the FPA’s Professional Partner Program, which is committed to raising consumer awareness of quality of advice.