In a statement yesterday, Mr Cormann said the industry working group will consult with all relevant stakeholders to develop the best way of setting up a public register of financial advisers.
“Our goal remains to ensure that we have a robust but efficient financial services regulatory system, which is competitively neutral so that people saving for their retirement or managing financial risks through life can access high quality advice they can trust,” said Mr Cormann.
Financial Services Council chief executive John Brogden said the decision will increase transparency and security for consumers.
“The register is a sensible and practical move to ensure consumers can check the credentials of advice providers,” said Mr Brogden.
“The improved FOFA regime will allow more accessible and affordable quality advice to millions more Australians whilst maintaining the highest level of consumer protection in the world,” he said.
Financial Planning Association chief executive Mark Rantall said that a register along with the Parliamentary Joint Committee Inquiry into financial planner education, professional standards and ethics will help advance the profession.
“The register will also help weed out the bad apples and provide protection for licensees, employers and ultimately the consumer,” said Mr Rantall.
Industry Super Australia chief executive David Whiteley explained that while it was a “sound initiative” the register is no substitute for the now “dismantled consumer protection elements” of the FOFA laws.
“The fine-print of the government’s regulations substantially dilutes the best interest obligations from financial advisers, and legalises the payments of a variety of conflicted remuneration,” said Mr Whiteley.
