[GRTV] Code gets eight out of 10 from long-time critic

Adviser advocate Murray Weatherston says the new code is good for advisers - but there's an elephant in the room.

Tuesday, May 21st 2019, 5:00AM

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Weatherston, who heads SiFA, has been unafraid to argue for independent advisers through the review of the financial advice law.

He said, despite his earlier claims that it was a waste of time putting in submissions, the lobbying had been "remarkably successful" and SiFa's touch was seen on at least two changes in the final version of the code and law.

However Weatherston, who is now on the board of Newpark, said replacement business was still the elephant in the room.

He said there should have been a requirement in the code for advisers to say whether they were considering a client's existing policy - and the differences between that and the one being recommended, if so.

The Financial Markets Authority should have to put out a public guide on why people should not chnage insurance policies and all the things that could go wrong, he said.

Weatherston said because the new code was high-level there was an opportunity for the Financial Markets Authority to fill in the detail below it, giving it more control of the advice sector.

He said the code should also have included a bit more prescription for continuing professional development, in line with the existing code - and said there could be issues for people hoping to meet the competence requirements in ways other than sitting the level five qualification.

"A lot of people will say I've been in the industry a long time, I don't need to go and do level five... the problem is how do you prove it and to whom that you have that prior experience, prior learning?"

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Tags: AFA GRTV SiFA