ANZ in Australia is backing a national competency exam, higher CPD requirements and an adviser-funded last resort compensation scheme.

It made a submission to the Senate Economics Committee’s Security of Financial Advice inquiry, saying the moves would give consumers confidence.

It suggested the US Financial Industry Regulatory Authority’s Series 7 exam as a blueprint.

It also suggested increasing CPD requirements to 40 points a year.

John Body, New Zealand’s managing director of wealth at ANZ, said he supported the idea. “It’s the right thing to do in the context of what’s happened in that market in the last 12 months.”

A competency framework was a key part of rebuilding trust, he said.

But New Zealand had already addressed competency with the requirements for a level five certificate and ongoing CPD for AFAs, he said.

ANZ encouraged advisers to complete a graduate diploma, he said, and the qualification requirements for advisers were one of the things that should be considered when the Financial Advisers Act comes up for review this year.

But Body said the industry needed to be careful not to make it too difficult to give financial advice.

“The regime has been going for four years and it is working.  For the FAA review this year it will be a question of how we finesse the existing framework rather than a new framework.”

It needed to support advisers employed by banks and independent advisers, he said.

“An unintended consequence of the Act is that it’s got harder for New Zealanders to get advice, It needs to be easier. Now we’ve solved the problem of the credibility of the adviser market, we need to answer the question of accessibility.”