Having the privilege of travelling around the world to explore how financial advice operates in different jurisdictions and cultures, Financial Planning Standards Board CEO Dante De Gori has noted some familiar themes from his time back home.
Speaking at FAAA Congress in Adelaide, the former head of the Financial Planning Association noted the European Union is currently grappling with adviser education, along with banning commissions.
“In the EU, they’re looking at how to harmonise financial adviser qualifications so you can go across borders in terms of being able to work in different territories across Europe,” De Gori said.
He added there is a push to ban commissions in the EU, which has faced resistance.
“There’s been a big pushback from banning commissions, but the EU is very interested in trying to ban commissions across EU territories,” De Gori said.
“That’s been pushed back, but now they’re looking for guidance how to improve transparency and choice regarding commissions.”
Australia banned commissions on investment products in 2012 under the Labor government’s Future of Financial Advice reforms.
While Australia’s defined contribution system celebrated its 30th anniversary last year, De Gori said The Netherlands has just legislated change away from defined benefit superannuation schemes.
The Future Pensions Act passed the Senate in The Netherlands in May, which will introduce a defined contribution system similar to Australia’s.
“When did we get rid of defined benefit schemes? Isn’t that amazing,” De Gori said.