Tony Pasin (Barker, Liberal Party) Share this | Link to this | Hansard source

My question is to the Minister for Revenue and Financial Services. Will the minister update the House on how the government is raising professional standards for financial advisers? How will this action benefit Australian consumers?

Mr Husic interjecting—

Tony Smith (Speaker) Share this | Link to this | Hansard source

The member for Chifley is warned! The minister has the call.

Kelly O'Dwyer (Higgins, Liberal Party, Minister for Revenue and Financial Services) Share this | Link to this | Hansard source

I thank the member for Barker for his question. He is somebody who has advocated very passionately to lift professional standards for financial advisers because he knows that Australians rely on expert financial advice to secure their financial future.

Today I announce that the Turnbull government will introduce legislation into the parliament to mandate professional standards for financial advisers. We know that it has taken the accountants hundreds of years to have high professional standards; we know that the same has occurred with lawyers; but we need to turbo charge high professional standards for financial advisers. Our reforms will include high compulsory education requirements for both new and existing financial advisers, supervision for new advisers, a code of ethics for the industry, an exam that will represent a common benchmark right across the industry to weed out those people who are not professionally competent and an ongoing professional development component that will mean that people need to continue to upgrade their skills.

The government will also establish an independent standards body to govern the professional standing of the financial advice industry. It will be responsible for developing and for setting the exam for developing the code of ethics and for determining the education requirements for both new and existing advisers. Our independent standard setting body will raise the minimum standards for financial advisers in the sector and it will ensure that the public can have confidence in financial advisers. Just to give one example, the current educational requirements for financial advisers is AQF5. That means that they need to have a diploma-equivalent skill. It is possible to do this in less than four days. We are saying it is important for financial advisers to have a degree or a degree-equivalent qualification.

But raising financial standards for financial advisers is only one aspect of what the government is actually doing to ensure that consumers can have confidence in the financial system. As those here know, it was important when we came into government that we conducted a root and branch review of the financial system through the Financial System Inquiry. Those opposite said it was not necessary and they did not support it. In fact, that was the case, despite the fact that they oversaw while they were in government scandal after financial scandal, many of which occurred while the Leader of the Opposition was the Minister for Financial Services and Superannuation and the shadow Treasurer was Assistant Treasurer or Treasurer. They did nothing. They talked about it. We took action. (Time expired)