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
We will be providing feedback to ASIC and even though I have been critical of them in the past, I am hoping that ASIC is willing to listen and learn from the terrible experiences of thousands of good and honest advisers who were forced out of the Industry through no fault of their own, plus the many Australians who now, can no longer pick up the phone to get guidance and councelling, which has caused them much financial and emotional stress with having no-one to turn to.
We will be pursuing our 6 point plan to bring the advised Life Insurance Industry back from the brink and we know, having spoken to many other advisers, that this strategy will keep them in the Industry and allow all Australians to benefit from having an Adviser to help guide them.
Let me see !! Costs to providing it ?? How about limited ability to be paid what the advice is worth ? 60% maximum commission and usually a reduction from 20% to 5.5% or their “abouts” to help keep the costs in some form of affordability ! in the future.The pressure of rising annual premium costs causing people to cancel their cover before the 2 year penalty time is up { and numerous other issues we have no control over } causing financial difficulty to increase. Removal of grandfathering commissions and other ” so called” conflicted remuneration. A full on degree requirement that is compulsory regardless of the market and client base you work in and may have for 30 years. No recognition of all prior learning just what seems like a good effort is included ? the more letters the better ! Have i missed anything ? This goes a lot further than a minimum SOA requirement. Admit you got it wrong and start again !
What constitutes good financial decision is different to everyone Commissioner Press. Stop trying to regulate and let advisers have conversations with people without fearing the wrath of ASIC because some compliance burden wasn’t met that has no relevance to any outcome that may or may not have occurred.
I’m sorry but personally I think ASIC don’t want feedback and any feedback that doesn’t suit their agenda will be dismissed so why waste you time folks. Have a look at ASIC Report 627 Titled Financial Àdvice: What consumers really think. After the fiasco that was Report 413, I don’t really believe anything that ASIC has to say and the article talks about TRUST. What a joke. Also the report doesn’t refer to Risk Insurance at all and when I ask my clients what they think about financial Àdvice they invariably confirm they never linked insurance with financial advice. Talk about starting from a low base. The sooner insurance is removed from financial Àdvice the more understanding all concern will have when reading reports like 627.
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