The Government has introduced legislation for enshrining the term ‘financial planner/adviser’ into law today – a move welcomed by the FPA and wider financial planning industry.
In April 2011, the FPA called on the government to restrict the term ‘Financial Planner’ under law. After extensive consultation with the financial planning industry, the legislation now provides protection and certainty to the Australian public seeking financial advice. Previously under the Corporations Act 2001, there was no constraint on individuals calling themselves ‘Financial Planners’ irrespective of their training, competence, and even licensing. The new legislation states that only those fully licensed and authorised to provide personal financial advice can now call themselves a financial planner / adviser.
"This is a historic day for financial planning and for all Australians. The FPA has long called for ‘truth in labelling’ for the protection of consumers. The tabling of the legislation from the government responds to those calls. We welcome the introduction of the legislation and thank Minister Shorten for honouring his commitment," said FPA CEO Mark Rantall.
“We expect this legislation to put a stop to those bad apples who have misled the Australian public and tarnished the profession by wrongly using this title.
“If passed, this will be a great win for consumers and it strengthens the benefits of the FoFA reforms, in particular the introduction of Best Interest and the removal of conflicted remuneration. All three of these reforms should not be seen in isolation but as a whole effort by the Australian financial planning sector to turn the corner towards becoming a truly respected profession."
The legislation will now run its formal parliamentary processes and the FPA will be working with all sides to ensure its passage through government.