While the disastrous findings of the Australian Securities and Investments Commission's (ASIC) and the Australian Consumers Association's recent financial planners survey is still bright in everyone’s memories, Ernst & Young has released another financial planning survey that’s equally damning.

Its national legal compliance survey focuses on planners’ willingness to comply with aspects of the Financial Services Reform Act (FSRA), and it’s not impressive reading.

The survey, which will be used by ASIC to assess licence applications and review licensees’ compliance programs, found about 40% of participating planners don’t consider compliance with industry standards a main objective of their business. More than 60% said the main hurdle to implementing an effective compliance program is lack of resources.

Axa CEO Les Owen is leading the chorus calling on the planners to get their acts together. Or face further regulation. He told financial planners at an Axa expo last week to “embrace the need for continuous improvement in standards of professionalism” so that regulation doesn’t become over-restrictive.

“If we do not… then it will be imposed on us,” he said. “It will be directed by regulators that don't understand what our market is and what our clients want.”

The survey, which is based on Australian Standard 3806-1998, is considered to be a benchmark for organisations planning to implement their own compliance programs.

Lucienne Layton, the head of Ernst & Young’s compliance advisory practice, told Sunrise Exchange News about 42% of respondents didn’t even know what they are up against with the FSRA.

About 95% of respondents said they had elected a compliance manager, but only 61% had board-approved compliance policies and plans.

“Organisations need to know what their current compliance system is and identify the gaps,” Ms Layton said. “Right now they don’t quite understand compliance as a management system and they need to find a way of re-branding compliance in a positive way and getting the laggards on board.

“I would like to see planners focusing on compliance as an integral part of their business. They have finance, marketing and human resources departments, so why not compliance?”