Industry Super Australia has condemned the Financial Services Council's (FSC's) proposal to take professional standards out of lawmakers hands and instead put the onus on a unified industry body.
The FSC has suggested a statutory body oversee new professional and education standards for financial planners earlier this week - a proposal ISA says could have disasterous consequences.
FSC chief executive John Brogden said self-regulation clearly was not working but stressed the industry was responsible for restoring confidence in the planning sector and dismissed calls to legislate the move to higher professional standards.
"Industry Super Australia supports all efforts to build the competency and professionalism of the financial advice industry, but the foundation are strong laws that protect consumers," its chair Peter Collins said.
He said a standard board comprised of bodies with vested interests could compromise the objective of rebuilding trust in financial advice.
"This confidence will come from financial advice that is genuinely impartial, backed up by an unqualified best interests test and a comprehensive ban on sales incentives.
The Financial Services Minister says the amendments to the SIS Act within the first QAR bill will “clarify the law to affirm the status quo”.
Superannuation funds have thrown their support behind the QAR reforms but want a “clear statement” that they will not be required to check all member SOAs.
In its latest report, the corporate regulator says the deduction of advice fees has led to instances of “inappropriate erosion of members’ balances”.
Financial advice is having a significant impact on how Australians are engaging with the more complex aspects of their superannuation, new findings have shown.
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