ABSTRACT

Drawing on theory of agency, Commonwealth Corporations Act, legitimacy theory and theory of professions, like law, accounting and medicine, a secondary study to understand the legitimacy of current adviser licensing was developed. It was established in the secondary literature advisers are dual agents facing conflicts of interest from association to product-conflicted licensees. Conflicts of interest from association is inconsistent with four objectives of the Commonwealth Corporations Act 2001. Applying Suchman’s theoretical legitimacy framework to the licensee–adviser licensing model examined the legitimacy of AFSL-AR licensing further. If the claims of illegitimacy are true, then this strengthens arguments for individual licensing via a single independent professional body like FASEA or the Hayne Royal Commission recommended statutory disciplinary body as another step to professionalise financial planning into a true profession.