Yesterday I attended a presentation by Greg Medcraft, Chairman, Australian Securities and Investments Commission. His theme was making sure Australians have trust and confidence in our markets (see similar recent speech here).

He said that about 70% of ASIC’s resources was spent on surveillance and enforcement to support that objective.

Qualifications of financial advisers

In question time he argued that Australian financial advisers should pass a university level national exam designed and administered by ASIC before they can provide personal financial advice.

The financial advisers registry would show who had passed.

He would not endorse any particular degree or training provider as a minimum level of competency.

The system would be based on a user pays model of a yearly levy calculated each year on the amount of time ASIC had to regulate the sector.

ASIC register
He distinguished between ASIC’s role as a regulator and as a manager of the registration system.

He argued that the ASIC Register was an IT business which should be corporatised and privatised and perhaps combined with other government registers.

This would allow ASIC to concentrate on regulatory issues.