Australia's peak advice associations have backed ASIC's plan for industry discussion regarding its proposed additional examination for financial advisers.
As part of its next phase of consultation on its proposal, ASIC said it would hold discussions with industry participants about the potential for setting up a self-regulatory organisation (SRO) which would develop and administer the exam.
"The AFA is very supportive of lifting and increasing professional standards within the profession. We are delighted with the regulator's approach," AFA chief executive Richard Klipin told InvestorDaily.
"The fact that there is consultation is good and we agree with the regulators that the industry is a key stakeholder to ensure that education and the exam lifts the education. Ultimately we are all interested in the same outcome."
The FPA also said it supports the move to improve the overall standards for the industry.
However the advice association also questioned what effect this would have on its members who already exceed requirements.
"Our view is that our members have already exceeded, by quite a margin, the minimum requirements as law," FPA chief executive Mark Rantall told InvestorDaily.
"Do our certified financial planners need additional examination and ongoing examination? We would argue they don't."
He explained that the FPA would like to discuss with ASIC how this examination requirement fits with the high professional standard it already has and how it would impact its members.
In addition, Rantall said he would like to discuss how a self-regulatory organisation would look.
"On the information we have to hand, it looks very similar to a professional association like ourselves," he said.
ASIC said it would like to see the completion of the national exam as a requirement for membership of an industry association or a condition of employment for industry participants.
"Continuing our consultative approach to improving the quality of advice provided to retail investors is a priority," ASIC chairman Greg Medcraft said.
ASIC said a self-regulatory model, when implemented effectively, can be an efficient approach to establishing the exam.
It plans to have a close relationship with the self-regulatory organisation because of its overall responsibility for standards in the retail advice sector, it would assist by contributing research and act as a formal observer.
The corporate regulator issued a consultation paper regarding its proposed national exam in April last year.
ASIC is proposing a 2014 start date for the exam with a two-year transition period.
