A bill enshrining the terms “financial adviser” and “financial planner” in corporation law will help protect consumers, Financial Services and Superannuation Minister Bill Shorten says.

The amendment, passed by the House of Representatives last week, makes it an offence to falsely claim to be an authorised financial adviser or planner, or to use similar terms.

“Australian consumers are entitled to be able to easily distinguish between the genuine, professional, authorised providers of financial product advice and unlicensed persons such as ‘property spruikers’, who do not have clients’ best interests at heart,” Mr Shorten told Parliament.

The move will benefit the industry and strengthen the Future of Financial Advice reforms, he says.

The amendment will take effect from July 1 if legislative procedures are completed by then, allowing the Australian Securities and Investments Commission to act against offenders.

“Sadly, some unlicensed people or unscrupulous people have been exploiting those who thought they were getting careful financial advice and personal financial advice but found that not to be the case,” ALP MP Deborah O’Neill said during the parliamentary debate.