If there’s a theme running through the Quality of Advice Review proposals, it’s that perfection has become the enemy of the good when it comes to financial advice in Australia, according to global advice technology specialist Ignition Advice.
In its analysis of the Proposals Paper Ignition says it backs the Quality of Advice Review proposals “…and is supportive of the Good Advice model as principles-based, simpler, and more direct.” (See: Scrap SoAs – QoA Review Recommendation.)
The firm says combined with proposals including:
- Relaxing documentation requirements such as Statements of Advice
- Encouraging institutional participation
- Broadening the definition of who can provide personal advice
- Delivering digital advice
“…Ignition believes a good advice standard should substantially increase the supply of advice, particularly for simple advice topics, and improve the financial position for a greater number of Australians.”
The company’s Asia Pacific CEO Craig Keary says that while Australia has a large advice problem, it is fortunately very resolvable.
He says independent reviewer, Michelle Levy offers a new model – Good Advice and that “…she is explicit that this is not necessarily the ‘best’ advice in any situation, but advice which is reasonably likely to benefit the client based on their circumstances at the time the advice is given.” (Also see: Michelle Levy -Clarifying Purpose of the QoA Review).
…While no set of proposals is perfect, the good advice model offers a realistic path to high quality financial advice being available…
“While no set of proposals is perfect, the good advice model offers a realistic path to high quality financial advice being available to all Australians who would benefit from it, in ways that are accessible and affordable”.
Keary says that in particular, the Proposals Paper “…offers an approach to broaden how advice is provided via more institutional involvement, and a wider spread of people within institutions delivering simpler advice.”
He adds that consumers expect advice from their institution “…institutions should be providing it, and ultimately digital advice will make this achievable in a fully compliant, affordable, and accessible way.”
