“Strategy advice” from “product advice”

There have been a number of calls in Australia for legislation to distinguish between “strategy advice” from “product advice”.

The Joint Parliamentary Committee on Corporate and Financial Services Inquiry into Products and Services has been listening to submissions by all stakeholders in Austarlia.
The recent submissions said that the consumer would be better served by “clear, legal definitions that make a distinction between institutionally owned product sales advice and indepently owned strategically focused advice.

Many of the submissions believe that it is difficult for the consumer to identify whether they are dealing with a financial product salesperson or an independenyt financial planner committed to putting their interests first. There have also been calls for an increase in competency standards and that a new professional standards body be formed. Only planners who have the requisite competency level and are registered with this body would be allowed to call themselves financial planners.

There definitely seems to be a groundswell of opinion calling for stricter controls and standards in Australia.

Do you think our regulators will follow the Austalian path or will they follow a path of least resistance?

Lets hear your comments!