The global CFA Institute and its Australian subsidiary have released 10 major recommendations for reform in the wealth management industry and argue that simply disclosing vertically integrated conflicts is not enough. In a 60-page report titled Professionalising Financial Advice, the CFA Institute and CFA Societies Australia note that they do not see a single solution to the problems highlighted by the Hayne royal commission. “Rather, we believe that reforms are needed in several areas, and that all these areas must be addressed together to ensure better outcomes for financial advice industry clients,” the Institute said.
“Prior to the Hayne royal commission, Australia has had many inquiries and reviews of the financial sector, which have produced a long list of recommendations, ranging from structural reforms and policy changes, to establishment of new regulatory bodies, to moves to improve professionalism and education standards in the industry.” The CFA Institute said it is clear that the eﬀectiveness of reforms to date has been “questionable” and argues there is still much room for improvement in terms of outcomes for consumers. “Strong steps must be taken this time to ensure genuine, lasting change in the financial advice industry in Australia. Without such steps, problems will continue to recur, with no real change in the way businesses operate, as they have, following previous inquiries.”
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