fbpx
Skip to main content
New Financial Assistance Hub

ABA welcomes new independent standards body

17 October 2016

Sydney, 17 October 2016: The Australian Bankers’ Association has today welcomed the Federal Government’s announcement that it will introduce new legislation into Parliament this year to create a new independent body to set higher professional standards for financial advisers.

“This is an important step in the professionalisation of the financial advice industry,” ABA Executive Director – Retail Policy Diane Tate said.

“Customers rightly expect to receive high quality financial advice to help them maximise their savings, build their wealth, plan for retirement or help manage their money in retirement.

“The new education and professional standards framework will mean we have more competent financial advisers who meet higher standards of ethics and conduct.

“Banks support the introduction of higher minimum qualifications, a new exam for all financial advisers, a new supervision year for new financial advisers, mandated continuous professional development requirements and a model code of ethics for all financial advisers,” she said.

“Banks1 are helping to fast-track the professionalisation of the financial advice industry by agreeing to fund the establishment costs of the new independent body. This will mean that the new professional standards framework can be introduced as soon as possible.”

Ms Tate said banks had already made significant changes to their businesses to lift standards.

“We have led the way on industry reforms including changing how banks hire2 financial advisers, so they know a lot more about the adviser’s conduct history and performance before employing them. 

“The aim is to better identify financial advisers who have not met the industry’s minimum legal, conduct and ethical standards, and help ensure Australians can trust they receive financial advice from professional, competent and ethical financial advisers at their bank,” she said.

The ABA’s new protocol for hiring financial advisers is open to all providers of financial advice, and allows signatories to ask a standardised series of questions about the financial adviser’s conduct history, quality of advice, risk management and compliance record.

The banking industry is also working on additional industry standards to ensure that banks can apply the Government’s professional standards framework in their competency and training programs, human resources policies, and compliance frameworks. 

“Our efforts as well as the new standards set by the Government will serve to professionalise, and build trust and confidence in financial advice from banks,” Ms Tate said. 

ENDS

Contact: Stephanie Arena 0477 470 677 or Nic Frankham 0435 963 913

1 Financial advice banks are ANZ Banking Group, Bendigo and Adelaide Bank, Commonwealth Bank, Macquarie Group, National Australia Bank, Suncorp Group, and Westpac

2 Reference Checking & Information Sharing Protocol http://www.bankers.asn.au/financial-advice

@austbankers

bankers.asn.au

Latest news

1 / 3
Don’t fall for a fake cupid this Valentine’s Day  
13 February 2024

Love is in the air, but so are scammers looking to exploit the season of hearts and flowers.   As Valentine’s Day approaches, the Australian Banking Association (ABA) urges everyone to be extra cautious and scam-proof their heart from romance scams and other fraudulent schemes.  “Scammers play the part and prey on people’s emotions,” ABA CEO… Read more »

Read more
Banks hardship teams on standby to help cyclone-impacted communities in Queensland 
31 January 2024

Banks have dedicated hardship teams on standby to help those impacted by Tropical Cyclone Kirrily and the Australian Banking Association has urged those in need of financial assistance to reach out.  “With the second major cyclone in as many months followed by torrential rain, people in Queensland have been dealt yet another serious blow. I… Read more »

Read more
Media Releases
Banks stand ready to support cyclone-impacted communities in Far North Queensland 
18 December 2023

Today the Australian Banking Association has told Queenslanders impacted by major flooding as a result of cyclone Jasper that banks have teams on standby to help those in need.  “The ABA urges anyone in need of financial assistance to reach out to their bank, and to do so as early as possible. Dedicated hardship teams… Read more »

Read more