Adviser registration more Whyte than black
The head of an industry taskforce set up to look at adviser regulation is warning that some sort of control is almost inevitable.
Thursday, May 25th 2000, 12:00AM
American International Assurance general manager David Whyte, who is heading a taskforce established by the Investment Savings and Insurance Association, says that "honest advisers" have nothing to fear from registration.
He says some sort of regulation of advisers is "not only inevitable, it's desirable."
He says the taskforce will be looking for "some form of regulation which enables (the industry) to cut down on the opportunity for malfeasant advisers to practice their ill deeds."
While schemes such as those run in the United Kingdom and Australia are generally considered to be draconian and undesirable, there is some evidence from the UK that suggests that registration has improved the quality of advice given.
Financial Planning and Investment Advisers Association (FPIA) president Andrew Charles concedes his preferred option, where fund managers and life office only sell their products through advisers who are members of a professional association, is not a goer.
Whyte echoes the views of ISI chief executive Vance Arkinstall (read story here), that the FPIA option isn't the best option.
"Compulsory membership of an organisation probably isn't going to happen," he says.
Charles says the FPIA is looking forward to working with the ISI taskforce on the matter.
Life Brokers Association head, Tracey Robinson, says his association has not yet tackled the adviser regulation issue, however he is happy for the LBA and the FPIA to work together on it.
Currently the taskforce is in the early stages of establishment.
HOW DO YOU THINK ADVISERS SHOULD BE REGULATED (IF AT ALL)?
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