The Parliamentary Joint Committee’s (PJC) report on proposals to lift the professional, ethical and educational standards in the financial services industry has been endorsed by the SMSF Professionals’ Association of Australia (SPAA).
Graeme Colley, SPAA’s Director of Technical and Professional Standards, says the association supports any positive moves that improve the professionalism and standards of financial advice, and this PJC report “is certainly a concrete step in that direction”.
“The report’s recommendations embody a common sense approach to lifting the standards of financial advice and protecting consumers.
“In particular, SPAA supports the recommendation that the standard of education for financial advice be lifted to an AQF 7 (bachelor degree) standard. This is the standard SPAA has long advocated.”
Colley says it is pleasing that the PJC, in its recommendation on educational standards, has recognised SMSF advice as a separate and specialist area.
“The proposal that specialist SMSF education be undertaken by those providing advice on SMSFs, in addition to satisfying core competencies for financial advice, is one of the key recommendations that SPAA made to the PJC.
“In addition, our recommendation to the PJC and the Financial System Inquiry that ‘general advice’ be rebadged as ‘product or sales information’ and personal financial advice be renamed ‘financial advice’ has been heeded by the PJC. This will give consumers a clearer understanding of the type of advice they are receiving and how it meets their financial advice needs.”
Colley says SPAA looks forward to working with the Government, ASIC and the PJC as the latter’s proposals, set out in its detailed report, are implemented.
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