The Turnbull government is setting up a new body to lift the professional standards of financial advisers – an industry hit by numerous scandals in recent years.
Minister for Financial Services Kelly O’Dwyer says all new advisers will need to sit an exam, complete a professional year and comply with a code of ethics from January 1 2019 after passing a relevant degree.
Existing advisers will have a five-year transitional period to reach degree-equivalent status.
“It is in everyone’s interest that Australians are receiving high-quality advice from high-quality advisers,” Ms O’Dwyer told the Financial Services Council Leaders’ Summit 2016 in Melbourne on Thursday.
She says the new standard-setting body will develop professional and education requirements for new and existing advisers, including an exam and a code of ethics.
Existing advisers will have from January 1 2019 to January 1 2021 to pass the exam.
It is envisaged the standards body will have the power to exempt advisers on a case-by-case basis.
“However, this exemption from the exam will be reserved for advisers who are exceptionally qualified and who have many years of experience,” Ms O’Dwyer said.
But all advisers will be required to comply with the code of ethics.
The government is also enhancing the financial adviser register to improve accountability and transparency, which will help consumers make informed decisions about choosing a financial adviser.
“I am confident that this new framework will improve the quality and integrity of financial advice,” Ms O’Dwyer said.
Read more at http://www.9news.com.au/national/2016/07/21/10/23/financial-advisers-face-new-tests-o-dwyer#uOIIScCLdJaxDH1i.99