Minister for Financial Services and Superannuation, Bill Shorten, today released draft legislation which will increase protections for Australian consumers by preventing anyone who is not a qualified financial planner or financial adviser from telling consumers that they are.

“The gift of longer life means it’s in the national interest to ensure consumers have confidence in financial planners and advisers. This reform also improves the growth prospects for the estimated 18,000 advisers and planners currently practicing,” Mr Shorten said.

“The Gillard Government recognises the need for quality financial advice, and for Australian consumers to have trust and confidence in their financial planners and advisers, is critical.  This measure will ensure that only persons authorised to give personal financial advice to retail clients can hold themselves out to be a “financial adviser” and “financial planner” (or use terms of like meaning).”

The measure will help to protect consumers from “product spruikers” who might hold themselves out to be authorised financial advisers when they are not. It empowers consumers of finance services to be able to identify genuine providers of financial product advice.

This will give effect to the Minister’s announcement on 22 March 2012 that the Government would introduce legislation into parliament before 1 July 2013 that would enshrine the terms ‘financial planner’ and ‘financial adviser’ in law.

An exposure draft of the legislation and draft explanatory memorandum can be found on the Treasury website: http://futureofadvice.treasury.gov.au

Submissions on the draft regulations close on 21 December 2012.

Minister Shorten Media Release: Jessica Lindell 0408 642 804