The AFA’s recently-formed AFA Licensee Leadership Forum held its third meeting at the end of last week, where it met with representatives from the Federal Treasury.
The meeting with the Licensee Leadership Forum is part of the Government’s industry consultation process, which will see it consult with a range of industry interest groups regarding its proposed Future of Financial Advice reforms package.
According to the AFA, senior Senior Treasury staff and the licensee representatives ‘heavily’ debated issues including:
- How the adviser/client “opt-in” fee renewal process will work in reality
- Extending intra-fund relief to advisers to create a level playing field
- Transitioning businesses to the new model
- Meeting the financial advice needs of everyday working families
- Risk and underinsurance
- PI cover and compensation funds
Licensee member and Financial Wisdom General Manager, Mark Ballantyne, acknowledged the Treasury representatives’ willingness to address the issues: “It is reassuring that Treasury is taking such a consultative approach to reform and is ready, willing and able to debate the issues that affect advisers at the coal face.”
Meanwhile, AFS Group Managing Director, Peter Daly, said it was extremely important that independent financial advice does not become a casualty of the FFA reforms: “While it is vital to open up access to financial advice to all Australians, it is equally important to ensure that independent financial advice, advice that is not linked to an institution, is still a viable option for those Australians.”
AFA CEO, Richard Klipin, said it was encouraging to see licensees from the big, medium and small end of town coming together to endorse the AFA’s call for better representation of adviser interests.
Advisers may need to rethink the way they engage with consumers…
The AFA also announced it will shortly be releasing new research findings it commissioned from CoreData, whose Principal, Andrew Inwood, said included some ‘pleasant surprises’ as well as some challenges for advisers. “The advice landscape is changing and along with it consumer sentiment,” said Mr Inwood, adding “Advisers may need to rethink the way they engage with consumers.”
