A Royal Commission into banking and financial services will provide an opportunity to increase transparency and improve ethics and professionalism across the financial services sector, says SMSF Association CEO John Maroney.
Addressing the Government’s announcement today of a wide-ranging inquiry into banking and financial services, Maroney says it will prompt a thorough review to ensure any poor or unethical practices harming consumers are stamped out.
“Ensuring that consumers always receive high-quality advice and services in an ethical and efficient manner from these sectors is essential to Australia’s national prosperity, as well as the retirement savings of all Australians.”
Maroney says that the Association is pleased that SMSFs are excluded from the terms of reference for the Royal Commission.
“While the SMSF sector has been excluded from Royal Commission’s inquiry, the sector has had significant scrutiny from the Cooper Review in 2010 and the Murray Inquiry in 2014 and emerged from both reviews with a high level of support and confidence in the sector.”
He adds that the Royal Commission hopefully will not have any impact on necessary reforms in the financial advice sector that are underway to improve the educational and ethical standards for advisors.
“These reforms, which are strongly supported by the Association, take effect from 1 January 2019 and will bring greater professionalism to the advice industry.”
Maroney says the integrity of the superannuation system and professionalism of those advising consumers are core beliefs of the Association, and as such it welcomes any opportunity to participate in a Royal Commission that will enhance the system’s ability to meet these worthy goals.