ASIC has moved to revamp the assessment and professional development framework for Australia's financial advisory industry by proposing a number of new initiatives, including a competency exam for financial planners.
The corporate regulator released details of its proposed changes to the industry framework yesterday in its Consultation Paper 153 Licensing: Training and assessment framework for financial advisers (CP 153).
The paper contains proposals relating to the assessment and professional development of financial advisers of tier one products.
"Our review identified concerns about current training standards and highlighted that change is required to increase consumer confidence in the financial advice industry and to encourage professionalism," ASIC commissioner Greg Medcraft said.
The proposed framework for assessment and professional development was designed to improve the quality of advice by ensuring all financial advisers achieved a uniform minimum standard that was consistent with developments in the industry, both here and overseas, Medcraft said.
ASIC proposes amending the assessment and professional development framework for financial advisers by requiring all new and existing financial advisers who provide tier one financial advice to pass a financial services competency certification exam to ensure they have the requisite competencies to perform their role.
All new financial advisers who pass the exam will then need to be managed by a supervisor who has at least five years' experience in the industry for a minimum period of one year full-time or equivalent.
ASIC has also proposed all financial advisers undertake a knowledge update review every three years on changes to laws, market issues and new products; and ongoing continuing professional development requirements.
CP 153 comes in response to the corporate regulator's admission in its submission to the Parliamentary Joint Committee Inquiry into Financial Products and Services that it planned to review its RG 146 requirements.
The deadline for industry feedback on CP 153 is 1 June.
