Australia’s advice associations will work with ASIC to establish an independent industry based professional standards board.
“The FPA will make a significant contribution to how the professional standards body will operate. We recognise that the FPA has a real role to play,” FPA chief executive Jo-Anne Bloch said.
“We caution the government that there are a number of different models regarding professional standards bodies around the world. We will be working with the government to develop an appropriate model for Australia.
“We as an association have already moved to raise professional standards in our industry by lifting education standards and moving away from commissions. Membership, however, is voluntary.”
Association of Financial Advisers (AFA) chief executive Richard Klipin said a professional standards board is crucial.
“As far as recommendation nine has been concerned there has been a lot of talk recently about education changes and professional standard changes and I think an industry wide leadership body, the professional standards board is absolutely required,” Klipin said.
“It needs to be across industry it needs to involve all stake holders.”
Association of Superannuation Funds of Australia chief executive Pauline Vamos said existing industry bodies would work with ASIC.
“Associations in the industry can definitely work with the proposed professional standards board. It doesn’t mean, however, that existing industry bodies can’t be part of the professional standards board,” Vamos said.
“The FPA have already moved to lift education standards and move their members away from commissions.”
PJC chairman Bernie Ripoll announced the proposal for a new professional standards board as part of 11 recommendations from the inquiry into financial products and services in Australia tabled in parliament last night.
“Most importantly we would recommend that the professional body works very closely with ASIC to ensure there is no confusion or overlap or conflicting roles,” Ripoll said.
“Bodies like the FPA and IFSA (Investment and Financial Services Association) have a role to play but they are representing their own members rather than the whole sector.
“The professional body is aimed to increase higher standards for the whole industry and look at such things as ethical standards and educations levels.”
Ripoll would not be drawn on who would oversee the new board, stating the committee would leave that decision up to the government.
