Key Documents
The Hon Bill Shorten MP has released an exposure draft of legislative amendments to restrict the use of the terms 'financial adviser' and 'financial planner'.
In March 2012, during parliamentary debate on the Future of Financial Advice (FOFA) reforms, the Hon Bill Shorten MP, announced that the Government would introduce legislation into parliament by 1 July 2013 to define the terms 'financial planner' and 'financial adviser' in law.
A number of terms are defined and restricted in the Corporations Act. For example, use of the terms 'independent', 'impartial' and 'unbiased' is restricted, as is use of terminology such as 'stockbroker', 'futures broker' and 'insurance broker'. Restricting terms in this way is intended to signal to consumers certain information about the person using them – for example, that the person does not accept commissions or is authorised to act as a stockbroker. The addition of 'financial adviser' and 'financial planner' to these terms is intended to improve outcomes for consumers of financial advice services, by empowering consumers of financial services to identify genuine providers of financial product advice.
An exposure draft of legislation to define these terms and a draft explanatory memorandum are provided below for comment.