Planners fear change to rules

Under government reforms to the disclosure of financial advice, real estate agents, mortgage brokers and accountants could move into selling financial products. Under present rules, a financial advisor providing personal advice must give a detailed statement of that advice, though the rules don't clearly distinguish between a professional giving independent advice and those wanting to sell financial products. As part of its corporate and financial services regulation review, the government is trying to create a new framework. Consumer representatives have baulked at moves to let financial advisors give summary rather than detailed information to new investors investing less than $10,000. The Financial Planning Association responded to the proposals by saying the sector could be split in two; although they would need to be licensed, mortgage brokers, real estate agents and accountants could make sales recommendations for financial products, leaving financial advice to qualified financial advisors.

Previous News Macquarie in Seek
Advertisement