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Banking royal commission hears only 35% of financial advisers are qualified

The banking royal commission has turned its attention to the dodgy advice in financial planning sector.

A sector which has come under enormous criticism, with the big banks facing the heat the advice they’ve given.

More than $383 million in compensation has been paid to customers who’ve been treated badly by financial advisors over the past decade.

Australia’s corporate watchdog says its found financial planners are more worried about receiving their fees than providing a service.

The Commission has also heard only 35% of financial advisors are properly qualified.

ASIC Deputy Peter Kell has told the Commission, the behaviour of some advisors has been appalling.

Financial Planning Association CEO Dante De Gori tells Ross Greenwood he agrees with Mr Kell’s comments.

He says a diploma of financial planning was the minimum standard.

“We are now raising that standard and we have legislation that says degree qualifications become the minimum standard from 2019.

“There has been a lot of talk, but there has been action as well.”

Listen to the full interview below