The Association of Financial Advisers has welcomed Federal Government moves to restrict use of the terms “financial planner” and “financial adviser” to Australian financial services licensees and those who act under them.

“We are delighted [Financial Services Minister Bill Shorten] has taken this action,” outgoing CEO Richard Klipin told insuranceNEWS.com.au.

“It was part of our submission to the Ripoll committee in 2009, which was the prelude to the Future of Financial Advice reforms, and we’ve been arguing for it since then.

“It enshrines the use of the terms adviser and planner to people who meet appropriate requirements.”

Mr Klipin says the industry has been concerned at the use of such titles by “property spruikers and the like. When things go wrong they’re reported as being unlicensed advisers and it tarnishes the reputation of the industry.”

Mr Shorten released draft legislation for the move last week. Submissions will be accepted until December 21.