Industry associations have welcomed the introduction to Parliament of legislation designed to raise the professional standards of financial advisers.

Association of Financial Advisers CEO Brad Fox says the bill is another step towards recognising financial advice as a profession.

“The future uptake of financial advice will be supported by this important industry reform,” he said. “We will continue to seek sensible transition pathways such as the Fellow Chartered Financial Practitioner designation for existing advisers.

“But it is important for all advisers to take note of the key transition dates and start early on upgrading their qualifications.”

Mr Fox says the AFA will help advisers through the transition, and its professional standards working group has begun work to attain a registered compliance scheme to monitor and enforce the forthcoming code of ethics.

Financial Planning Association (FPA) CEO Dante De Gori says the body “has been a strong advocate for raising education standards and ethics” in the profession.

“The bill provides financial planners with more clarity and certainty about the future, and what may be expected of them,” he said.

Mr De Gori says the FPA will support its members through the transition and will push for recognition of its Certified Financial Planner (CFP) designation.

“The FPA will be advocating that those who have obtained the CFP designation or will obtain the designation after July 1 2019 be recognised as an equivalent qualification.”

The Financial Services Council (FSC) has welcomed the establishment of a standards board.

“The FSC has strongly supported this initiative and is pleased our proposal for the establishment of a new independent standards setting body, recognised in legislation, has been adopted,” CEO Sally Loane said.

“Raising minimum standards and establishing an independent standards setting body under law will strengthen the trust the community has in financial advisers. These reforms mean financial planning will become a profession, like medicine, law and accounting.

“Consumers will know they are being looked after by a well-trained advice professional who is held to the highest standards.”

See other story