Move to lift professional standards of financial advisors backed: SMSF Association

GUEST OBSERVER

The SMSF Association strongly endorses the Federal Government’s decision to legislate to improve the professional standards of financial advisors.

Improving the educational and ethical standards of financial advisors has been a long-term policy of the organisation, especially as it relates to the $622 billion self-managed super fund (SMSF) sector.

The Minister for Revenue and Financial Services, Kelly O’Dwyer, announced that the Government will enact legislation tomandate professional standards for financial advisors, including a code of ethics and compulsory education requirements for all new and established advisors.

Having financial advisors who meet rigorous standards and have completed relevant education courses is crucial to ensuring consumers receive the best quality financial advice.

This is especially important with the increasing demand for financial advice from the baby boomer generation who are approaching or entering retirement.

We look forward to working with the new independent standards setting body to develop improved educational standards for the financial advice industry. 

A priority for the Association will be to ensure that advisors providing advice to SMSF trustees have the requisite educational qualifications to do so. 

The new standards will begin on 1 January 2019 and the final transition deadline will be 1 January 2024 for existing advisors to meet the new degree-equivalent educational status.

This timeframe will give the industry sufficient time toadjust to the new regime. But all advisors should not lose focus on their own ongoing professional obligations to their clients to keep improving and developing their advice capabilities.

Jordan George is head of policy, SMSF Association and can be contacted here.