Australian authorities are increasing consumer protection by enshrining financial advisory titles in law.
Bill Shorten, Minister for Financial Services and Superannuation, has released draft legislation which aims to increase protections for consumers by preventing anyone who is not a qualified financial planner or financial adviser from using those titles.
The government says that the measure will help to protect consumers from those who might hold themselves out to be authorized financial advisers when they are not. It also empowers consumers to be able to identify genuine providers of advice, it notes.
“This measure will ensure that only persons authorized to give personal financial advice to retail clients can hold themselves out to be a ‘financial advisor’ and ‘financial planner’ [or similar terms],” he said, noting that this will give effect to its pledge to introduce legislation before July 1, 2013, that would enshrine the terms ‘financial planner’ and ‘financial advisor’ in law.
“It’s in the national interest to ensure consumers have confidence in financial planners and advisers. This reform also improves the growth prospects for the estimated 18,000 advisers and planners currently practicing,” Shorten said, noting that its critical for consumers to have trust and confidence in their financial planners and advisers.