The proposed rating system is outlined in a white paper by Adviser Ratings, an independent financial advice rating agency.
It says the aim of the scheme is to enhance the information available for consumers when selecting a financial adviser.
This system will see licensees rated in two ways: the first using openly available or commercially procured data, and the second using proprietary and qualitative information direct from the licensee.
Adviser Ratings says it is already in consultation with the Australian government, regulators and industry to get approval for the scheme.
Mark Hoven, Adviser Ratings’s chief executive of its wealth division, says the new rating system is intended to highlight the better service providers and “rebuild community faith in our industry”.
“We believe a summary indicator of adviser quality, like a licensee rating based on a consistent and transparent methodology, would vastly improve the way customers search for and track the ongoing status of financial advice providers,” he said.
