ABSTRACT
In summary, integrating agency, legislation, Suchman’s legitimacy framework and theory of professions proved a valuable contribution to examine the legitimacy [or what was found to be the illegitimacy] of the licensee-authorised representative licensing model. Predominantly, the statutory best interest duty, misalignment of adviser–clients’ interests and licensee commercial interests compromising best interest duty delegitimised current adviser licensing. Clearly, licensing advisers via third-party commercially oriented product-biased licensees does not display regulative, consequential moral, procedural moral, structural moral, personal moral and culture-cognitive legitimacy. Inevitably, a single new body with updated rules, norms and scripts for individual professional licensing should supersede the delegitimised licensing ASIC licensees. FASEA or the new Hayne-recommended statutory disciplinary body is the most logical solution for this challenging task. Yet before launching into any new regime, further research must address the perceived challenges. Additionally, all stakeholders should get involved to contribute to shaping the future adviser licensing policy in Australia. Individual licensing is a solution to professionalise this emerging profession to operate with the same standards and ethics as other professions. Hence, not only aiming to restore trust and confidence in advisers, but to protect the public, while encouraging new entrants into financial planning careers.
