ANZ Bank has backed the plan to establish a national exam for financial planners across Australia to allow the sector to regain public confidence.
The bank believes an annual test based around America’s General Securities Representative Exam (known as the Series 7) will be best model to follow.
“ANZ supports recommendations of the Financial Systems Inquiry to lift education, training and competency standards for financial advisers to achieve consistent high quality advice outcomes and to build consumer trust across the industry,” the bank said in a statement.
“ANZ believes that the Series 7 exam run by the Financial Industry Regulatory Authority in the United States is an example of a globally recognised best practice model that could be applied to Australian conditions.”
Series 7 is a six-hour exam that needs to be passed by brokers and advisers in the US in order to legally trade securities. It helps determine if advisers know how to appropriately assess a client’s risks and the information that needs to be provided prior to giving recommendations.
Meanwhile, other big four banks such as Commonwealth Bank, Westpac, and NAB remain mum on the proposed national testing program.