A self-regulatory model could be the best way to administer a national examination for financial advisers, according to the Australian Securities and Investments Commission (ASIC).

ASIC will consult industry participants about establishing a self-regulatory organisation (SRO), which it says is an efficient way to establish the exam.

The model allows industry members to take responsibility for shaping their profession and demonstrates industry’s commitment to providing effective accreditation for financial advisers, ASIC says.

The regulator says it would have a close relationship with the SRO because of its overall responsibility for standards in the retail advice sector.

The regulator would assist the SRO by contributing research on competencies, acting as a formal observer and providing regulatory guidance.

But the Financial Planning Association (FPA) wants more clarity on the proposal and the standards the exam will meet.

FPA CEO Mark Rantall has acknowledged the need for a higher national standard to build consumers’ trust, but pointed out that FPA membership requirements have been helping raise professional standards.

“We feel Certified Financial Planner professionals have already met higher standards,” he said. “They sign up to 40 continuing professional development hours per year and therefore should be given relief from initial examinations.”

ASIC wants a 2014 start for the exam with a two-year transition, and would like completion of the national exam to be a requirement for membership of an industry association or a condition of employment for industry participants.

The exam was proposed in April last year and ASIC says feedback has been largely supportive.

But last year the Australian and New Zealand Institute of Insurance and Finance, the Association of Financial Advisers and the National Insurance Brokers Association criticised elements of the proposal.