Macquarie Investment Lending has been in discussions with financial planning dealer groups for the introduction of an accreditation system in relation to giving advice about structured products and derivative-based investments.
The move is to ensure advisers have a better understanding of these products, which can be quite complex in their make up, so ultimately individuals have a better knowledge before they decide to invest in them.
"The best way for this market to continue to evolve and improve is for product manufacturers to partner with dealer groups or advisers and do what they can to make sure the levels of education are consistent," Macquarie Investment Lending executive director Peter van der Westhuyzen said.
"It's the inconsistency of the levels of education which is one of the biggest hurdles that we need to overcome as an industry," he said.
The proposal has only been in existence for less than two months but the feedback Macquarie has received for it has been very positive, according to van der Westhuyzen.
"We just rolled out a program with one large dealer group to the point where they have stipulated that unless their advisers go through this accreditation course, they will not be able to make these products available to their clients," he said.
The process is another critical step in the transition of financial planning from an industry to a fully recognised profession, Argyle Lawyers principal Peter Bobbin said.
"Advisers need to understand the substance of products and they need to relate that to clients," Bobbin said.
"Do you present a product based upon what its descriptive name is without actually looking at it? The importance is to actually look at it and to actually present it," he said.
