Consumer trust isn’t something to be taken for granted, but reports from the UK, US and here at home are all pointing towards an uplift in trust levels around financial advice, which can only be a welcome development.
There are significant tailwinds behind the financial advice industry at the moment, but some major obstacles are still preventing advice practices from taking advantage of surging demand according to a new study from CFS.
Jones looks to shorten exam, improve ethics code
The new assistant treasurer and minister for financial services, Stephen Jones, has backed up his education pathway plan with a call to review the Code of Ethics and cut back of the number of questions in the adviser exam.
In a recent ministerial release Jones said that after engaging with the industry, he has “identified improvements” that stakeholders think could be made to the standards in the adviser Code of Ethics.
“I have heard these views and I have asked Treasury to consult on the Code in 2023, after the Government has considered its response to the Quality of Advice Review,” Jones stated in the release.
The code has come under considerable criticism since its inception, with advisers noting that Standard 3, for example, which deals with conflicts, does not marry-up with directives in the Corporations Act. While the code compels advisers to “not act” where a conflict exists, the Act states that conflicts should be managed.
The government has charged Treasury to review the adviser exam and “explore” areas where there might be room for improvement, “such as reducing the number of questions”.
“I continue to support the exam as a benchmarking tool which tests the practical application of a financial adviser’s knowledge, including on regulatory and legal requirements, and ethical reasoning,” the minister stated. “I remain committed to the exam testing these knowledge areas and content.”
