‘Confusing’ financial services and credit panel have been criticized
In support of the recently passed Best Advice Bill – which sees the FSCP established within ASIC as the sole disciplinary body for financial advisers – the corporate regulator will be “responsible for convening individual panels to consider disciplinary matters”.
The executive director of the Association of Independently Owned Financial Professionals (AIOFP), Peter Johnston, took aim at the government panel, which consists of 31 part-time members.
“The Financial Services and Credit Committee [FSCP] ad by [financial services minister Jane Hume] is confusing to say the least,” Johnston said.
“How can you have a panel that is supposed to represent the consultancy industry containing only two politically damaged hybrid associations and one institution-dominated with minimal adviser members?
“Furthermore, how can you not have a representative from an accountancy association on the panel when a major theme is the focus on tax advisers emanating from the Tax Practitioner Board? How can you not have an association with stockbroker representation on the panel?
“The same goes for highly specialized SMSF practitioners. How can their Association be excluded?
Mr. Johnston argued that the panel should represent the four main advisory cohorts – SMSF, securities brokerage, accounting and risk/general advice.
“If politicians want to deal with institutional issues, they should go to sector representatives, not advisory-focused entities,” he said.
It comes after Mr Johnston proposed the creation of a group of experienced advisers and ASICs to tackle the complex compliance regime earlier this week.
According to Johnston, “fair and reasonable adjustments” to relevant legislation are needed to ease the burden on advisers.
Neil is the Associate Editor for Wealth Headlines including ifa and InvestorDaily.
Neil is also the host of the ifa show podcast.