Financial advisers have little hope of becoming fully fledged professionals while rogue advisers are allowed to jump between dealer groups with impunity.

AMP Financial Planning managing director Michael Guggenheimer believes the problem is ongoing and that it is time for dealer group heads to take action.

“I would welcome a conversation among licensee heads… about the ethics and quality of the people that seemingly move from licensee to licensee,” he said.

“[If we] support planners that potentially do not represent a quality outcome, then we all suffer accordingly.

“How do you have a desire to be a profession, which espouses education, ethics and enforcement as hallmarks, and yet we allow people to move around?”

 

 

While the Future of Financial Advice (FoFA) reforms impose higher standards on the industry, Guggenheimer says dealer group heads should be doing more.

“Seldom does my telephone ring from another licensee to ask about someone’s background,” he said. “They might get information from somewhere else… but there probably should have been a few times when the phone rang.

“Trying to get the industry to move into a profession, we have to manage the quality and continue to raise the bar. I’ve never heard of a profession stand still when it comes to quality.

“I’m not saying we’re bad today but I’m saying that as we take strides forward, there will be some that don’t make that hurdle.”