The Financial Planning Association (FPA) will scrutinise the adviser training program proposed by Commonwealth Bank (CBA) following its recent advice scandal.

“The FPA will make it a priority to review the action to be taken by CBA to increase [adviser] education standards,” CEO Mark Rantall said.

“We have proposed CBA introduces a mandate that each and every one of its financial planners must undertake ethics training, commit to no fewer than 30 hours of professional development a year and sign up to membership of an approved professional association.”

Both the FPA and CBA have called for more action from the Federal Government to raise standards.

CBA CEO Ian Narev wants a public adviser register and measures to improve customers’ financial literacy.

Mr Rantall says the Government must establish a summit of industry leaders to consider implementation of the 61 recommendations in the Senate Economics Committee’s report on the operation of the Australian Securities and Investments Commission.

CBA has instigated a review program following poor advice at its Commonwealth Financial Planning (CFP) and Financial Wisdom businesses.

“This is a new, far-reaching program of review and remediation, with independent oversight, to deliver fair and consistent outcomes for customers of CFP and Financial Wisdom,” Mr Narev said. “At no cost to customers, the program will provide an assessment of the advice received, access to an independent customer advocate and an independent review panel.”

The review applies to any CFP or Financial Wisdom customer who received advice between September 1 2003 and July 1 2012. Their advice will be reviewed by a specialist CBA team.

On completion, clients will receive assessments from independent customer advocates.

If clients disagree with the assessment, they can obtain a further review by an independent panel, which will determine if compensation is payable.

Mr Narev says CBA will be bound by the panel’s determination. As a last resort clients can turn to the Financial Ombudsman Service.

“We will also have the process overseen by an independent expert, who will make their periodic reports public,” Mr Narev said.