Financial Planning: Regulations, Reforms, and Ethical Standards

Running head: FINANCIAL PLANNING
Financial Planning
Name of the Student:
Name of the University:
Author’s Note

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FINANCIAL PLANNING
Table of Contents
Introduction......................................................................................................................................2
Discussion........................................................................................................................................2
Financial Regulations and Reforms.............................................................................................3
Educational System and Factors Affecting Financial Advisors..................................................6
Application of Ethical Codes.......................................................................................................8
Conclusion.....................................................................................................................................10
Reference.......................................................................................................................................11

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FINANCIAL PLANNING
Introduction
The financial planning industry has undergone significant changes and nowadays the
same is regarded as one of the important sectors of a market. The financial planning industry is
still relatively new and proper research needs to be conducted before entering the industry. As
more and more industries and population grow, there is a dire need for financial planners to
make appropriate decisions on behalf of the clients. As per the definition which is provided by
Financial Planning Association (FPA) and Certified Financial Planner Board (CFP), financial
planning is a process which takes into account the goals of an individual and formulate proper
plans for meeting such goals by proper management of the financial resources of the company.
Financial planning industry is a huge in nature as it involves areas such as
superannuation, taxation, estate planning, trusts, home ownership, investments, debt and risk
management, social security benefits and annuities. Therefore, proper regulations are required
for regulating the financial planning industry and ensure that the client gets proper advice
according to his situation (Australian Financial Review, 2018). The assessment would be
discussing significant reforms which are brought about in Financial planning sector and also will
be demonstrating application of ethical standards which is stated by Financial Adviser Standards
and Ethics Authority (FASEA). The assessment also shows influence of financial regulations on
the financial planning industry and further development of financial planning.
Discussion
As per the current market scenario, financial planning is considered to be an important
component of the individual planning process in Australia. Financial regulations have direct
impact on the financial planning process which needs to be followed by financial planners. In
particular, the regulations which was introduced in Australia in 2002 had significant impact on

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FINANCIAL PLANNING
different financial services such as accounting profession, regulators, the financial services
industry.
In most of the financial planning business, it is essential that ethical behavior is
maintained so that the clients can be given proper services. It is very essential to be noted that
ethical standards must be maintained by financial planners so that a level of trusts and
confidence can be maintained with the client (Gill, Bunker & Seltsikas, 2015). One of the major
issues which will be identified is the role of ethical standards in development and growth of
financial planning businesses (Bis.org, 2017). As the demand for financial planning services
increases, it is essential to maintain a level of ethical code so that the business can further prosper
and clients can rely on the services which is provided by financial advisors.
Financial Regulations and Reforms
In order to effectively manage the operations of a financial planning business and ensure
that such businesses comply with relevant ethical standards, financial regulations are
implemented (Worthington, 2016). One of the regulations which have been brought about in the
financial planning industry is the Corporation Amendment Act 2017 which has brought about
new reforms which is directed to enhance the professional, educational and ethical standards of
the financial advisors (Corporations Amendment Act 2019). It is anticipated that the reforms
would bring about changes in the financial planning industry and bring out the industry from the
crisis which it has recently faced. In recent time, collapse of major financial services firms
during the global financial crisis.
Setting Up of an Independent Body