2024 will see further legislation developed to implement the remaining elements of the Government’s financial advice reform package.
In a statement outlining the Government’s introduction this week of the first tranche of legislation to deliver its financial advice package of reforms, Financial Services Minister Stephen Jones stated that further legislation “…will be developed to implement the remaining elements of the Delivering Better Financial Outcomes package in 2024.”
As to the legislation currently before Parliament, Jones says the Treasury Laws Amendment (Delivering Better Financial Outcomes and Other Measures) Bill 2024 “…implements reforms which reduce unnecessary red tape that adds to the time and cost of preparing financial advice (see: First Tranche of Govt’s Response to QoA Review in Parliament).
He says the current legislation “…streamlines the delivery of financial advice by consolidating fee documents for ongoing fee arrangements into one simplified document and allows more flexibility in how financial services guides are provided.”
…the rules for conflicted remuneration will be simplified…
Jones adds that the rules for conflicted remuneration “…will be simplified by making clear that benefits paid by clients, including from their superannuation accounts, are not conflicted remuneration.”
The legislation also “…strengthens transparency and protections for consumers who receive personal advice by introducing a consent requirement before purchasing an insurance product that will result in a commission payment.”
Jones also notes the amendments will support Australians to access the advice they need “… by making clear in the law that Australians can use their superannuation accounts to pay for financial advice about their superannuation.”
He says it does not expand the scope of fees which can be charged to superannuation accounts.
