Australians could gain easier access to financial support under a new framework proposed by the Actuaries Institute aimed at broadening the scope and affordability of financial help available to consumers.
The Institute’s proposed Help, Guidance and Advice (HGA) framework sets out a structured approach for financial institutions to deliver varying levels of financial support with greater regulatory certainty.
Andrew Gale, Chair of the institute’s HGA working group, said the framework is designed to fill a critical gap in the financial advice system by making scalable, cost-effective assistance more accessible to middle Australia.
“Middle Australia stands to benefit most because comprehensive personal advice is out of reach for many,” said Gale.
“Help, guidance and specific-purpose simple advice at pivotal moments would significantly improve their financial wellbeing.”
The institute states the framework could support millions of Australians – including the 710,000 people expected to retire within the next five years – by giving financial institutions, superannuation funds, accountants and digital platforms clearer parameters for the support they can offer.
Gale said the framework would be particularly beneficial for retirees and younger Australians alike, helping older people navigate issues such as pension entitlements and superannuation drawdowns, while helping the younger cohort with budgeting, insurance, and superannuation consolidation.
He urged regulators to formally recognise ‘guidance’ as distinct from comprehensive financial advice, noting that it currently exists in a regulatory grey area. The Institute said the framework complements the federal government’s DBFO legislation.
The institute’s paper, Financial Advice Reform and Help, Guidance and Advice, was developed following consultation with super funds, consumer groups, and professional bodies.
Members of the HGA working group will present the findings of its discussion paper in December, click here for details.
