AFA renews call to restrict 'financial adviser' term
Friday, 3 July 2009 12:15pm
The Association of Financial Advisers (AFA) is again calling for Treasury to restrict the term 'financial adviser' amid a barrage of negative media reports on the planning industry.
Richard Klipin, chief executive of the AFA, said the term ‘financial adviser' needs to be restricted to those who are regulated by the Australian Securities and Investment Commission (ASIC) and abide by the Corporations Act.
"There should be transparency around the term and anyone using it should be subject to the same scrutiny and have to adhere to the same regulatory requirements as financial advisers," said Klipin.
"Those who can't, have not earned the right to call themselves advisers."
Jim Taggart, president of the AFA, said the reputation of all financial advisers is being tarnished as a result of the actions of a small number that don't act appropriately.
"Some sectors of the media are holding the adviser community as a whole accountable for the sins of the very few and in the process are willfully ignoring the vast majority of advisers who do the right thing," said Taggart.
"Consumers need the help of a financial adviser in order to achieve their financial goals and objectives. The current open season on advisers does nothing to encourage consumers to get that help."
This week, financial advisers were on the news pages of mainstream press following a story on a couple of accountants who received notices from ASIC delivered to their doors. This was reported earlier as an ASIC raid on two financial planners.
Press release
