ASIC has released a consultation paper which invites advisers and other stakeholders to provide feedback on what they consider to be the key barriers to delivering quality and affordable personal advice to Australian consumers.
The regulator says its Consultation Paper 332 Promoting access to affordable advice for consumers is intended to serve two purposes:
- Understand the issues and impediments relating to the supply of good quality affordable personal advice
- Understand the practical steps that can be taken by ASIC and industry to improve consumer access to good quality affordable advice
ASIC notes this consultation is part of a broader piece of work it is undertaking to understand how to improve access to personal advice for consumers.
It says a particular focus of this consultation is on promoting access to quality ‘limited advice’, where it says that all personal advice can be scaled up and down to cover all areas relevant to the client, or one or some of the areas relevant to the client. It describes ‘limited’ or ‘scaled’ advice as personal advice that does not cover all areas that are relevant to the client.
…while consumers want better access to limited and affordable advice, many industry participants find it challenging to provide this type of advice
In a statement accompanying the release of its consultation paper, ASIC says it knows from previous research that while consumers want better access to limited and affordable advice, many industry participants find it challenging to provide this type of advice. It adds it is keen to receive feedback on the impediments to providing affordable and limited advice that ASIC and industry are able to address (see also: The Case for Retaining Commissions).
ASIC Commissioner Danielle Press said good-quality affordable personal advice may help consumers make better financial decisions, especially during times of heightened vulnerability and that the regulator welcomes feedback from the financial advice industry and others with an interest in making advice more accessible to consumers:
‘Your feedback is vital for us to better understand the impediments on the supply side. It will help us determine what meaningful steps we can take to help industry better provide good-quality affordable advice that meets consumers’ needs,’ she said.
ASIC is inviting feedback from the financial advice industry and others with an interest in making affordable advice more accessible to consumers. Feedback on industry’s experience in providing limited, digital and strategic advice is of particular interest.
Responses to ASIC Consultation Paper 332 are due to be submitted by 18 January 2021.
Click here to download CP 332 Promoting access to affordable advice for consumers
Click here to complete an adviser survey, included as part of CP 332