An ASIC spokesperson has revealed further details of the corporate regulator's proposal to set up a self-regulatory organisation (SRO) under its examination for financial advisers.
The spokesperson told InvestorDaily that it expects the SRO to have a board of approximately six members plus a chair.
"The board's responsibilities may include setting standards for the exam and finding a way to develop the exam through an external exam delivery provider," the spokesperson said.
"An independent technical committee would be appointed who would be responsible for developing and maintaining the exam. These are all issues the industry would need to think through."
Last week, ASIC announced news of the potential for setting up a self-regulatory organisation as part of its next phase of consultation on its exam proposal.
Industry associations and participants have since backed ASIC's SRO proposal to develop and administer the national examination for financial advisers.
"From what I can gather, what is being proposed doesn't move into [our] territory," FPA chief executive Mark Rantall told InvestorDaily.
"It's a body setting minimum competencies and having a bi-annual examination of those competencies."
But he explained that the complexity of an examination would require some oversight.
"There are a number of different ways of achieving that goal and the FPA certainly be looking forward to working with ASIC in relation how that might play out," he said.
The Association of Financial Advisers chief executive Richard Klipin expressed his positivity about the potential new SRO.
"It is a good thing. It is allowing the industry to get involved and in a sense self-regulate," he said.
Financial advisers in the industry have also expressed their support of the potential of a new SRO.
"I think so long as there is consultation and clearly an opportunity for the industry to influence and be involved then I'm hopeful we can get to a point where it is a sensible and valuable contribution that organisation can make," ANZ Wealth general manager of advice and distribution Paul Barrett told InvestorDaily.
"I think what is positive is in the last 24 hours or so, it looks like there is going to be a high degree of openness and consultation."
AMP financial planning advice and service director Steve Helmich expressed support for initiatives that will increase professional standards.
"It will encourage more Australians to seek financial advice through financial planners," he said.
WLM Financial Services director Matthew Walker said he wanted to see the financial planning profession elevated.
"I think setting up a SRO is a fabulous idea. It allows the industry to take responsibility for itself and to be a little more in touch with what is happening at the cold face," Walker said.
"I think a SRO has better potential to work with the industry than a government regulated authority."
He explained that if you use other professions such as accounting, legal or professional, as a benchmark and apply that success to financial planning it should be elevated to the same standard.
"I don't' see why it shouldn't be but it will take a lot of work and change of public perception to do that," he said.
Patron Financial Advice financial adviser David Hasib "in principle" he is in favour of it.
"I think self-regulation is important as much as what the government regulates upon us, so that will promote best of breed," he said.
"As long as the intent is to create a more up-to-date, educated and informed adviser, it can only be a win."
