The Minister for Financial Services and Superannuation Bill Shorten introduced legislation into Parliament that empowers Australian consumers to identify genuine providers of financial advice.
The reforms deliver on the Minister's commitment of 22 March 2012 that the Government would introduce legislation into Parliament by 1 July 2013 defining the terms 'financial adviser' and 'financial planner'.
The reforms will enhance protections for Australian consumers by prohibiting anyone who is not a licensed financial planner or financial adviser from telling consumers that they are. This will protect consumers from unlicensed operators, such as property spruikers, who may represent that they are genuine providers of financial advice when they are not.
"These reforms will enable consumers to know who to trust with their financial affairs, and build consumer confidence in the financial product advice industry", Mr Shorten said.
"Through the Future of Financial Advice (FOFA) reform package, the Government has made significant improvements to investor protections and the quality of financial product advice, and has increased consumer trust in the financial advice industry. The legislation I introduced today continues to build on these reforms".
Through making it an offence for a person to falsely represent that they are a financial planner or a financial adviser, this legislation will make it easier for the corporate regulator, the Australian Securities and Investments Commission, to take action against product spruikers and other individuals who seek to deceive Australian consumers.