A new financial services reform [FSR] could be on its way, Alexis Compliance Risk Solutions principal Christina Kalantzis told delegates at an Association of Financial Advisers (AFA) conference yesterday.
Kalantzis, who is also AFA Policy and Government Committee co-chair, said she was confident another FSR could be coming following the Ripoll inquiry into financial products and services, submissions for which close on 31 July 2009.
The Ripoll inquiry, which began on 25 February 2009 and follows the collapse of Westpoint, Storm Financial and Opus Prime, was likely to lead to regulatory changes around December as the parliamentary inquiry committee would no doubt have recommendations for the government following its investigation, Kalantzis said.
What was most concerning was that of approximately 137 submissions that had been received by the parliamentary inquiry committee to date, over 80 per cent had come from mums and dads who lost money in Storm Financial, she said.
"How do you think we [people in the advice industry] are looking? What do you think the picture looks like for the inquirers reading these submissions? Do you think it's more likely that laws will be changed? Absolutely," Kalantzis said.
The AFA would enter a submission recommending that the term financial adviser be restricted and Kalantzis urged others in the industry to also have their opinions heard.
"A lot of the negative media and views about the financial services industry are being born through stories about people that shouldn't in fact be called advisers," Kalantzis said.
"News articles and press releases are referring to certain advisers that have done wrong by their clients, however if they're unlicensed I'm surprised they're even called advisers in the first place.
"The term adviser needs to be restricted to those who are authorised, that are aligned to an Australian Financial Services Licence and who have certain qualifications in line with RG 146."
