The Association of Financial Advisers (AFA) is broadly supportive of and appreciates the timeliness of the Government’s Financial System Inquiry (FSI) response.
AFA CEO Brad Fox says, “This is a significant report and will give advisers and consumers greater certainty and confidence. We support the vision for a competitive, efficient and transparent financial system, including freedom of choice on superannuation. The value of financial advice in this context has been clearly recognised and as such, our members will continue to be a valuable resource for Australians in managing and protecting their financial position.”
Raising educational and professional standards is a signpost of professionalism for the financial advice industry, and is supported by AFA members. “Our members tell us they want to improve the understanding and perceptions that consumers have of financial advice. Raising educational and professional standards plays a big part in that. We look forward to working with the Government and other industry stakeholders to embrace higher standards.”
Mr Fox says the detail of the transitional arrangements for existing advisers will be absolutely critical, including how existing advisers can demonstrate having met the new minimum standards.
The requirement for advisers to subscribe to a Code of Ethics is also supported by the AFA. “The AFA has a long held belief that advisers, the public and the profession significantly benefit from embracing the responsibilities of operating under a professional and ethical code such as that subscribed to by members of the AFA,” says Fox.
The AFA continues to engage with the Government, most recently on the Life Insurance Framework (LIF). “We remain in discussions on the detail and implementation of the LIF,” says Mr Fox, who was in Canberra meeting with the Assistant Treasurer last week. “Ensuring fairness and balance is important for all parties: consumers, insurers, and financial advisers – especially those who own and advise in small businesses.”