Reaction to the Government’s draft legislation that Statements of Advice will be replaced with Client Advice Records has been positive, with the FSC among those welcoming the move.
FSC CEO Blake Briggs says he’s pleased Government is maintaining momentum on delivering advice reform.
“On the eve of the federal election, the financial services industry can view the financial advice reform package release as indicative of the Government’s continued commitment to the reform agenda following the election.”
The draft legislation includes the replacement of the statement of advice with advice records.
“Layers of red tape and onerous regulation has meant that financial advice now costs more than $5,000 in some cases, putting it out of reach for millions of Australians.
“The Government’s broader financial advice reform package has the capacity to reduce the cost of providing advice by forty per cent.”
CALI has also welcomed the Federal Government’s continued progress on financial advice reform, describing the announcement as an important step towards more accessible and affordable advice.
…onerous regulation has meant that financial advice now costs more than $5,000…
“This announcement confirms the Government’s commitment to reforming financial advice and improving financial outcomes for all Australians, but there’s still more work to do,” says the organisation’s CEO Christine Cupitt.
“CALI has long advocated for more affordable, accessible financial advice by allowing life insurers to provide simple answers to simple questions at no extra cost to them.”
Elsewhere, Insignia Financial Chief Customer Officer Renee Howie says the client advice record is a much-needed reform.
“However, reforms to best interest duty and the removal of the safe harbour steps are also necessary to facilitate more affordable advice for Australians.”
Kent Griffin, CEO and MD Acenda, says the proposed reforms will help simplify the advice framework, “…ensuring consumers can access advice in a format that is easy to understand and tailored to their individual needs”.
“We look forward to collaborating with industry on the full implementation of this reform package to improve financial outcomes for millions of Australians,” he says.
