I am pleased to be here today to launch the Financial Planning Associations new Certified Financial Planner Professional Education Program to be made available through the University of Western Sydney.
The Government welcomes moves by industry bodies to take on the challenge of adopting measures which improve the performance of the financial sector and contribute to Australias development as a regional financial centre.
These are also objectives of the Government.
As we all know, the performance of the financial sector depends heavily on the confidence of the investing public.
The quality of financial advice is a vital factor in securing that confidence.
The development of this new Program is a key step in helping the FPAs members to meet their clients expectations that they receive a professional, high quality service.
The Government applauds the continued moves and initiatives by the FPA to build on the already strong professional standards of its members. These measures will have flow on effects in securing a stable, vibrant and well regarded industry both domestically and abroad.
The Program also dovetails nicely with the proposed reforms to the financial services industry arising out of the Financial System Inquiry and the Corporate Law Economic Reform Program.
Those reforms seek to harmonise the standards set for providers of financial services and for the advice they give.
Issues of competency, skill and experience of financial service providers will be an important aspect of those reforms.
Under the proposed single licensing regime, financial service providers seeking to obtain a licence to advise or deal in financial products will be required to demonstrate minimum standards of competence and skill to provide the relevant financial services.
The standards of competence required to provide financial services is an issue that has been considered for some time by various industry sectors as well as the Australian Securities and Investments Commission and its predecessors.
While the requirement for advisers to demonstrate personal competence will be prescribed through legislation, is envisaged that the detailed requirements will be developed by ASIC in consultation with the industry and with educational and training organisations.
I expect that a consultation paper providing further detail on these matters will be released shortly.
Industry bodies, such as the FPA, are well placed to assess the needs of their members and market participants. I am confident that the new Program will meet the needs of those parties.
Associations such as FPA have provided valuable contributions in the area of developing appropriate educational qualifications for financial planners
Through consultations with industry on the proposed reforms and industry initiatives such as this Program, together Government and industry will promote a leading edge financial services industry for Australia.
I look forward to my continuing involvement with the Association.