On Friday, the federal government released details of its proposed register, explaining that its position was “informed” by the negotiations of the register industry working group, which was made up of a wide range of industry body representatives from the superannuation, banking and financial planning sectors.
The register will enable “investors, employers and ASIC to verify the credentials of financial advisers and be confident that they are appropriately qualified and experienced”, and will include AFSL ownership and ASIC intervention details alongside general business name and qualification information, acting assistant treasurer Mathias Cormann said in a statement.
The Financial Services Council was first to issue a statement in response, with FSC chief executive John Brogden hailing the advent of “greater transparency and disclosure”, and indicating the service may help to increase the number of Australians seeking professional advice.
Australian Bankers’ Association acting CEO Diane Tate reflected on her association’s role in taking part in the industry working group, anticipating that the government’s register will be “user-friendly with quick, simple and easy-to-use search functionality”.
The client-facing advice associations also welcomed the move. FPA chief executive Mark Rantall highlighted the dual benefits of weeding out “bad apples” while improving consumer trust in financial planning, and AFA president Deborah Kent applauded the government’s “prompt turn-around time” and wide consumer benefits of the register.
AIOFP executive director Peter Johnston particularly welcomed the ultimate inclusion of AFSL ownership information – which InvestorDaily understands was a point of contention during industry working group meetings – and said his involvement in the consultations, along with Independent Financial Advisers Association of Australia (IFAAA) president Daniel Brammall, can largely be thanked for the inclusion of this element of the register.
While also endorsing the announcement, the Stockbrokers Association of Australia said that it hopes it can “go further” in the medium term and include more information about “adverse findings or misconduct of advisers”, describing the announced model as a “good first step”.
Similarly, Industry Super Australia said the register should contain more explicit information about “bonus and incentive” payments ostensibly paid to financial advisers, although adding that it broadly “welcomes” the announcement.
