FSC Statement On Financial Advice Reforms
The Financial Services Council (FSC) welcomes the release of the Government’s exposure draft legislation covering part of the second tranche of the Delivering Better Financial Outcomes package.
CEO of the FSC Blake Briggs said: “We are pleased the Government is maintaining momentum to deliver on its commitment to deliver advice reform.
“On the eve of the federal election, the financial services industry can view the financial advice reform package released today as indicative of the Government’s continued commitment to the reform agenda following the election.”
The draft legislation includes the replacement of the statement of advice with advice records, clarification around advice topics that can be collectively charged for via superannuation, and the introduction of ‘superannuation nudges’ to drive member engagement.
Other aspects of the reform yet to be drafted include modernising the best duty obligations by removing the safe harbour steps and introducing a ‘new class of adviser’ that can provide simple advice.
“Layers of red tape and onerous regulation has meant that financial advice now costs more than $5000 in some cases, putting it out of reach for millions of Australians. The Government’s broader financial advice reform package has the capacity to reduce the cost of providing advice by 40 per cent,” Mr Briggs concluded.
The FSC will review the draft legislation before responding to the Government’s consultation.
https://fsc.org.au/news/media-release/media-release-fsc-statement-on-financial-advice-reforms