“While the AFSL system plays an important role in regulating financial products and services, recent reforms have focused the regulation of financial advice at the individual practitioner level,” Mr De Gori said.

“This is an appropriate approach and acknowledges the relationship between a client and their financial planner is a personal relationship, not one between an AFSL and the client. Future reforms to the regulation of financial advice should occur through the professional standards framework and rely on individual registration of financial planners.”

Mr De Gori said the AFSL system currently added unnecessary costs to the provision of advice and introduced potential conflicts between the views of the licensee and adviser.

The association said the establishment of a single disciplinary body for advisers would open the door to individual registration, and that it made sense for the body to also have responsibility over monitoring an adviser’s qualifications and exam status.

“This information should be provided by the individual financial planner and verified as correct by the single disciplinary body,” Mr De Gori said.

“In this manner, the register will become an authoritative source of information on each financial planner, including their qualifications, compliance with professional standards and disciplinary record.”