Industry or Profession? Applying Social Contract Theory to Financial Planning in Australia

Craft Amanda (), Taylor Sharon and Ibbett Nicole
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Craft Amanda: Associate Lecturer, School of Business, Western Sydney University
Taylor Sharon: Associate Professor, School of Business, Western Sydney University
Ibbett Nicole: Lecturer, School of Business, Western Sydney University

Financial Planning Research Journal, 2025, vol. 11, issue 1, 16

Abstract: The Australian financial planning industry has been subject to increasingly rigorous forms of government regulation. This paper applies social contract theory to assess whether financial planning can be considered a profession based on its current form. Social contract theory, which intertwines professional status with the promotion of the public good and delivering altruistic service to society, serves as the theoretical framework for this evaluation. Through an analysis of the financial planning industry’s regulatory environment and its response to public inquiries, this paper concludes that while strides have been made, significant gaps remain that prevent financial planning from being recognised as a full-fledged profession.

Keywords: professionalisation; self-regulation; professionalism; social contract theory (search for similar items in EconPapers)
JEL-codes: G28 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:vrs:finprj:v:11:y:2025:i:1:p:16:n:1001

DOI: 10.2478/fprj-2024-0006

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