Govt moots education overhaul for financial advisers

The banking industry has thrown its support behind the Abbott government's push to raise the education standards of financial advisers. Assistant Treasurer Josh Frydenberg has flagged the possibility of moving financial planners from a diploma-based qualification to a degree-base qualification. "There are a lot of very good financial advisers out there but there are also some that are inadequately qualified," Mr Frydenberg told ABC radio on Thursday. Unlike the accounting profession and legal profession - which have established codes of ethics, have exams, and ongoing professional development - this has been lacking in parts of the financial planning industry, he said. Australian Bankers' Association head Steven Munchenberg agreed there is a need to build confidence and trust in the financial advice industry. It is important to move towards higher standards of education and competency for financial advisers. "This means mandatory minimum education, ethics, experience and continuing professional development standards for financial advisers, set by an industry-based education council," Mr Munchenberg said in a statement. The Australian Securities and Investments Commission expects to have an industry-wide financial adviser register up and running at the end of March. Its establishment comes in the wake of a series of financial scandals, including one involving advisers from one of the nation's largest banks, the Commonwealth Bank. The Customer Owned Banking Association (COBA), that represents smaller financial institutions like building societies, says the register will boost transparency and help consumers distinguish genuinely independent advisers from major bank shopfronts. COBA boss Mark Degotardi said there should be a push to ensure entities can't hide behind subsidiaries and sub-brands in retail banking and mortgage broking. "Major banks use sub-brands to lure consumers who don't want to bank with a major bank," he says. "Consumers deserve effective disclosure about who they're really dealing with." AAP