The Association of Financial Advisers (AFA) believes the Australian Securities and Investments Commission’s (ASIC) CP153 paper is too narrow in its focus.

In its submission to ASIC, the AFA says the focus is on adviser knowledge assessment rather than a broader framework of professional development.

It argues the concentration should be on knowledge, skills and ethical behaviour to enhance the skills of an adviser.

“In the past there was recognition from within the industry that the focus of training had become one of too much ‘compliance’ with RG146, to the exclusion of the development of adviser-client relationship skills,” the AFA says in its submission.

“Since then, the industry has moved forward to a focus on ‘professionalism’, incorporating professional standards, practice standards and ethical behaviour.”

The AFA argues that “good quality advice” is not a static concept and should be continually developed and adjusted to clients’ needs over a period of time.

“The adviser-client relationship is a lifetime one,” it says. “While we recognise the importance of the knowledge ‘pillar’, it is the ability to communicate with clients to firstly establish the relationship and to act ethically throughout the course of the relationship that ensures its very longevity.”

The AFA warns the proposal for a national exam could have a detrimental effect on adviser numbers.

It sees experienced advisers leaving the industry as they would face yet another “set of hurdles” after already proving themselves competent.