Members of Australia's financial planning sector need to align themselves with a professional association if they are to protect consumers' needs amid a tightening regulatory environment, the FPA's chief executive has said.
"What we think needs to happen [next] is more members need to be part of a professional association," FPA chief executive Mark Rantall said.
"If you call yourself a professional planner, then you need to be part [of an association].
"For consumers to be adequately protected, the people they are dealing with need to have adequate education and be in a professional association which should be approved by legislation."
The FPA, which represents more than half of the estimated 16,000 financial planners in Australia, continues to experience membership growth, Rantall said.
He said the association is working closely with the government and notes that driving more members to become part of a professional association is the next step for the financial planning industry as it enters becomes more regulated.
Views on tighter legislation and association membership follow Minister for Financial Services and Superannuation Bill Shorten's debate in April on whether to restrict the term 'financial planner'. The debate stemmed from a call to action by the FPA.
Under the Corporations Act, there is no constraint on individuals calling themselves financial planners irrespective of training, competency or licensing.
