Australia: Govt takes measured approach to reform financial advisory sector
Source: Asia Insurance Review | Jul 2023
The government will adopt the bulk of Quality of Advice review recommendations to ensure Australians have access to reliable and affordable financial advice, according to a statement released by assistant treasurer and minister for financial services Stephen Jones.
The reforms aim to address the high cost of advice, better protect consumers, bolster ethical standards and ensure Australians can access helpful information that could make a meaningful difference to their quality of life in retirement.
The government will develop legislation over the coming year to deliver this vital reform.
The package of reforms will be progressed in three streams:
- Removing onerous red tape that adds to the cost of advice with no benefit to consumers
- Expanding access to retirement income advice
- Exploring new channels for advice
Consumer group’s response
CHOICE CEO Alan Kirkland said, “If designed correctly, these reforms will meaningfully improve access to advice, without watering down important consumer protections.”
He added, “By focusing on sensible regulatory reforms in the short term and then addressing access to advice within the super system for people approaching retirement, the government’s response is consistent with the approach consumer groups recommended in a letter to the treasurer and assistant treasurer in March.”
“We know many people across Australia are approaching retirement and need assistance with the next steps in their financial journey. We need greater access to advice in the retirement phase, with strong safeguards to ensure that advice is in the best interests of the people who seek it. This needs to be supported by simpler and fairer products for people in retirement.” A