The Financial Planners and Insurance Advisers Association (FPIA) has shied away from specific ideas about adviser regulation.
Instead of advocating one specific idea it wants research and develop a policy its own specific policy on the subject.
The FPIA board decided, at a meeting last week, that chief executive Philip Matthews should formulate a policy paper on the issue of regulation.
This decision comes after FPIA president Paul O'Brien made a personal approach to Social Welfare minister Steve Maharey seeking his support for adviser regulation.
O'Brien's approach to Maharey has been welcomed as it put the perennial issue of regulation on the agenda. However, it has also been criticised as O'Brien sought support from Maharey for a proposal a proposal whereby all advisers would have to belong to a professional association such as the FPIA.
Also the approach was made without the sanction of the board.
The idea which won Maharey's support was an idea that all advisers had to belong to a professional association such as the FPIA.
Matthews says the board is happy that O'Brien raised the issue, however more work needs to be done on the options.
One thing that is clear is that there is certainly an issue with advisers giving "unethical or illegal advice," Matthews says.
One of the problems though is that it is impossible to quantify the size of the problem.
"The board believes that there is a very real issue in the financial advisory industry with unethical or dishonest financial advice," Matthews says.
Knowing there is an issue means the association then has to develop a policy to address it.
"At the moment we don't have sufficient information on front of us to make a decision."
Matthews says his work will involve quantifying the size of the problem, then looking at what happens in other jurisdictions such as Australia and the United Kingdom.
He says it is a big task and he hopes to have a policy paper with options before the board by the end of the year.
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