The Financial System Inquiry’s plan to look again at the issue of aligned and non-aligned advisers has been welcomed by life specialist dealer group Synchron.

Director Don Trapnell says there is a case for further discussion on the differences between the two.

“We have been saying for some time now that there is a significant conflict when financial services products are owned and distributed by the same parent organisation.

“While the advice given by an adviser in a vertically integrated advice company may very well be sound, the client has a right to know if any product recommended by that adviser is manufactured by the same organisation.”

Meanwhile, the Financial Planning Association has welcomed recommendations on renaming general advice as “sales” or “product information” and enshrining the term “advice” so it relates to personal advice only.

And the Financial Services Council has applauded the inquiry’s acknowledgement of the importance of financial advice, including low-cost scaled advice.

CEO John Brogden says the council also looks forward to “providing a detailed submission supporting the discussion on increased competency and educational standards for financial advisers. We support increased quality, accessibility and affordability of financial advice.”