The Association of Financial Advisers (AFA) is calling on the Federal Government to review requirements for professional indemnity insurance.

In its submission to the Ripoll Inquiry – the parliamentary joint committee examining Australian financial products and services – the AFA has urged it to regulate the use of the term “financial adviser”.

CEO Richard Klipin says as the law stands anyone offering financial “advice” can call themselves a financial adviser.

“While financial services reform legislation has been successful in reforming the financial advice landscape, the collapse of Storm Financial demonstrates there is room for improvement,” he said.

The AFA wants the Government to review the Australian Securities and Investments Commission’s RG126 reforms and clarify the definition of a failure of a company and general investment losses. It also wants initiatives to improve consumer literacy and a raising of the education bar for financial advisers.