The Federal Government’s draft legislation to raise the professional standards of financial advisors is another important step down the path of giving Australians “quality” financial advice and to build consumer trust in financial advice.

The SMSF Association CEO/Managing Director Andrea Slattery says the Association welcomes the release of the draft legislation as a critical part of the process of ensuring these reforms achieve their primary goal of lifting professional standards.

“We have consistently supported the general thrust of the recommendations made by the Financial System Inquiry and the PJC reports to improve the standards of financial advice and build professionalism.

“Raising the educational standard for financial advisors is critical to ensure consumers get the quality of advice they have the right to expect and to grow a financial advice industry that has trust as a core building block.

“It’s also imperative that all financial advisors operate under a code of ethics as a way of increasing the professionalism of financial advice.

“We look forward to continue working with the Government and fellow professional and industry bodies to implement the reforms, including developing educational and ethical standards, as well as ensuring that there are appropriate transitional arrangements to cater for existing advisors.”

Slattery says the Association has played an integral role in the introduction of an SMSF profession, and the raising of professional standards in SMSF advice, and would bring this expertise to all discussions about the draft legislation.

The legislation is scheduled to be introduced in February and passed by June next year.

Source: SMSF Association

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