The Federal Government has called for feedback on a co-regulatory model for adviser standards in life insurance and super.

It has released a consultation paper based on recommendations from the Parliamentary Joint Committee on Corporations and Financial Services’ report on adviser standards.

Under the proposed model financial advisers must be registered to advise on Tier 1 financial products.

They would also be required to be members of a Professional Standards Council-approved association, hold a degree, complete a professional year, pass a registration exam and undertake ongoing professional development.

Industry associations would create and fund an independent, professional standards-setting body called the Financial Professionals Education Council.

The associations would tell the Australian Securities and Investments Commission when an adviser has passed the registration exam and completed their professional year.

Assistant Treasurer Josh Frydenberg says the joint committee’s report and the Financial System Inquiry show the current regulatory model does not work.

“It is now time to put in place an enduring framework that raises the professional, ethical and education standards of advisers,” he said. “With the right model, improvements in the qualifications, competence and ethics of the financial advice industry will be a win-win.”

Mr Frydenberg says the advice industry will benefit from improved consumer confidence and becoming a recognised profession. “Consumers will benefit from increased transparency, accountability and adviser competence.”

The closing date for submissions is May 7, with further consultation until June.