MenuFor over a decade, the Financial Planning Association (FPA) has been calling for enshrinement of the term ‘financial planner’ for the protection of consumers and last night, the bill was passed in the federal House of Representatives.
Dante De Gori, General Manager Policy & Standards for the FPA said:
“This is a historic day for all Australians – the FPA called for enshrinement of the term ‘financial planner / adviser’ to allow consumers better clarity in identifying a trusted professional. The passing of the bill is a significant step in strengthening consumer protection and increasing trust in the profession.
“The FPA has led the pathway to professionalism in financial planning and holding our profession accountable to higher standards will benefit those in the profession, those looking to join the profession and the clients they serve. It has been a long journey but we are delighted that our call has been heard and this bill has been passed to the benefit of all Australians.”
Under the Corporations Act 2001, there was no constraint on individuals calling themselves “Financial Planners” irrespective of their training, competence, and even licensing. The legislation now states that only those fully licensed and authorised to provide personal financial advice can now call themselves a financial planner / adviser.
Timeline:
- April 2011 – the FPA called on the government to restrict the term “Financial Planner” under law for the protection of consumers
- November 2012 – The Hon Bill Shorten released legislation for enshrinement in
- March 2013 – government introduced legislation for “financial planner / adviser”
- May 2013 – the bill for enshrinement of the term “financial planner / adviser” is passed
