The financial consulting industry is a tricky industry for consumers, we all want financial independence but the unscrupulous advisers who remain in the industry damage personal finances.

In Australia, government regulation has forced advisers to gain tertiary qualifications in finance and financial products. This is a pretty good initial step, but more needs to be done to rebuild confidence in the financial services industry. Like the law and accounting industries, professional associations should be empowered to register advisers, maintain registration through ongoing education with the ability to sanction members for violation of standards.

Needless to say, professional qualifications are the first step in registration, an industry examination should be required. A reporting mechanism for misconduct needs to be implemented where members of the public can make reports of poor and unethical behaviour. The industry association would have to require individual membership for registration along with corporate membership for organisations to adequately represent the industry. Only this way could the registration board generate sufficient funds to operate effectively.