Quality of Advice Review Terms of Reference Released

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The Government has announced the release of the final draft of its Terms of Reference for the Quality of Advice Review and the appointment of a leading lawyer in financial services regulation and superannuation, Michelle Levy, as the reviewer.

A statement from Senator Jane Hume says the review presents an opportunity to assess how the regulatory framework could deliver better outcomes for consumers. Amongst other issues, the review will investigate:

  • Michelle Levy…there are many ways we can improve the regulation of financial advice…

    Whether there are opportunities to streamline and simplify regulatory compliance to reduce costs and duplication

  • How to improve the clarity and availability of documents provided to consumers
  • Whether parts of the regulatory framework have created unintended consequences.

The statement adds that, as previously announced, the review will cover the review of life insurance commissions that had been progressed by ASIC.

Levy says she is pleased to be appointed to lead the review.

“… I am optimistic about what we can achieve…”

“I believe there are many ways we can improve the regulation of financial advice, making it easier for Australians to receive quality advice when they need it and in a form they want. I am optimistic about what we can achieve.”

The statement notes that the review will invite submissions from the public and consult with stakeholders, including consumers, industry, and regulators. It will also be informed by data collected by ASIC and Treasury.

A report will be provided to the Government by 16 December this year.

The statement adds the commencement of the Review gives effect to the Government response to recommendations 2.3, 2.5 and 2.6 of the Financial Services Royal Commission:

Taken from the Final Report of the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry. Recommendation 2.3 falls under the category of ‘Quality of advice’
Recommendations 2.5 and 2.6 are related to recommendations addressing ‘Conflicted remuneration’

Click here to access the Government’s terms of reference for the 2022 Quality of Advice Review.

 



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1 COMMENT

  1. I’d be bracing myself for more stupidity and added grief if I was STILL in the industry when this plays out. In fact, I have no doubt that a decision will have already been made to further damage and destroy this industry and that Michelle Levy has just been chosen to deliver the message.

    Its just become so oppressive working in this industry now that that’s ALL I expect. While external idiot politicians with no actual experience in this industry continue to interfere, that’s our fate.

    Etch these words in stone – happy to be proven wrong in the future.

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