The Financial Planning Association (FPA) has backed ASIC's new adviser reference-checking guide and plans to include the framework in its enforceable practice standards in 2008.
FPA chief executive Jo-Anne Bloch said it was crucial to protect consumers by weeding out bad apples and ensuring only professional financial planners operate in Australia.
"We are assisting the profession to embed these initiatives into their business practices by putting in place web-based tools, hotlines and templates to support members in adopting ASIC's new reference-checking framework," she said.
Bloch said the financial planning profession was committed to maintaining the high standards it has embraced under the Financial Services Reform Act and FPA code of ethics and rules of professional conduct.
"The reference checking in the handbook will provide licensees with a guide to seeking information from previous employers' about a planner's conduct, performance, and level of professionalism," she said.
ASIC and Standards Australia announced late last week they had joined forces to produce the handbook to help financial planning principals weed out bad apples when recruiting.
The handbook attempts to help the industry seek and provide employee references, as well as sift out dishonest, incompetent or unethical financial advisers.
ASIC's Bad Apples project aims to stop financial advisers with dubious employment records who resign from one position and move to another firm that is unaware of their history.
