The financial planning industry has welcomed the Senate Economics References Committee’s recommendations on raising adviser standards and professional behaviour.

The committee’s report focuses on the behaviour of Commonwealth Bank’s financial planning business, Commonwealth Financial Planning (CFP).

Committee chairman Mark Bishop describes past practices at CFP as “appalling”.

“The conduct of a number of CFP advisers was unethical, dishonest, well below professional standards and a grievous breach of their duties,” he said.

“The way in which vulnerable, trusting people were targeted shows the CFP planners involved had a callous disregard for their clients’ interests.”

Association of Financial Advisers CEO Brad Fox says his organisation condemns such behaviour.

“The trust of consumers has been breached and that is simply not good enough,” he said.

“Some of the recommendations in the report are consistent with our views on what is required to further the evolution of financial advice into a trusted profession.”

Financial Planning Association (FPA) CEO Mark Rantall says the report “vindicates a strong and comprehensive position forged by the association on behalf of its members. We are pleased the inquiry has included all the FPA’s recommendations in the final report.

“The FPA is committed to stamping out inappropriate advice outcomes rooted in complex product distribution and conflicted remuneration practices, while offering viable solutions based on what is right about appropriate financial planning.”

The Federal Government is resisting calls for a royal commission on CFP, but Treasurer Joe Hockey has asked Commonwealth Bank CEO Ian Narev to explain how the bank is responding to the issues raised.

Full analysis of the committee’s report will appear in Wednesday’s Life+Health insuranceNEWS.com.au.