As the date of the Federal Election gets closer the FAAA has released a list of priorities for the incoming government. Drawn up following a member survey, the organisation has identified some predictable areas of focus for the next administration.
The FAAA lists its top five priorities for government as:
- Fix the Compensation Scheme of Last Resort (CSLR)
- Provide adviser access to the ATO portal
- Deliver effective Delivering Better Financial Outcomes (DBFO) reforms and implement a standardised fee consent form
- Cut red tape
- Support new entrants to the financial advice profession
The FAAA is also contacting candidates and industry stakeholders to gauge their commitment to addressing its requests, as well as launching a website to document candidates’ positions.
In addition, it’s planning to hold a series of summits across the country, bringing together political decision-makers and stakeholders to discuss accessibility and affordability of financial advice.
Sarah Abood, the FAAA’s CEO, says the events of the past few years have highlighted the importance of quality professional financial advice for all Australians. However, she says that while well-intentioned, “much of the legislation introduced since the Hayne Royal Commission has not hit the mark”.
“It has ultimately served to drive up the cost of advice, and made it more difficult for people to get the advice they need at an affordable price to manage their increasingly complex financial needs,” she says.
“Our future government needs to take substantive steps to fix the crisis in our profession.”
Abood says her top five is designed to help reduce the cost of providing professional advice and encourage more people to enter the advice profession.
…we are also calling for greater support for new entrants to the profession…
“Our most immediate requirements for CSLR are to cap the financial advice levy at $10 million and stop financial advisers paying for product failures,” says Abood.
“These steps would go a long way to ensuring the CSLR achieves what it was set up to do, without causing immeasurable harm to the financial advice profession, and potentially failing consumers.
“Paying a levy for the mistakes made by others before you even started in the profession is clearly a deterrent to becoming a financial adviser.”
Abood is also calling for greater support for new entrants to the profession, including a flexible education standard, financial support from government for the employers of Professional Year candidates, and reducing the cost of the financial adviser exam.
The federal election is on Saturday 3 May.
