The FAAA has welcomed the Government’s response to the 2024 Parliamentary Joint Committee inquiry into financial abuse and its commitment to working with the financial services sector to better protect Australians.
FAAA CEO, Sarah Abood says financial abuse is a complex issue that requires a coordinated national response.
“The FAAA looks forward to working with the Government and other stakeholders to develop additional practical solutions that will help detect abuse and better support victims and people at risk.”
She says financial advisers are deeply concerned about this issue, which they see first-hand. “Advisers have helped clients by identifying the signs of potential financial abuse and supported them through the trauma and recovery.”
The association also noted it welcomed the Government’s recognition that professional bodies can help ensure that ethical obligations, professional standards and disciplinary frameworks meet community expectations in this area.
The FAAA will continue to work with key stakeholders to progress work in this area…
Abood says the FAAA will continue to work with key stakeholders to progress work in this area, including under the Australian Human Rights Commission’s leadership of the Financial Abuse of Older People Action Collaborative and through the Advisory network for business-related financial abuse.
“The FAAA has worked with academics and financial abuse specialists to build members’ capability through approved university financial planning degrees and continuing professional development. We remain very supportive of this work and call on the Government to fund what is likely to be costly further education and training to strengthen professionals’ ability to identify and respond to financial abuse.”
Assistant Treasurer and Minister for Financial Services Dr Daniel Mulino had announced the Government was strengthening protections for victim‑survivors of financial abuse through reforms across superannuation, tax, corporate accountability, and child support.
He said in a statement that the Government’s response to Committee’s financial abuse inquiry saw it supporting, or supporting in principle, 58 of 61 recommendations.
Mulino said financial abuse is a serious form of domestic and family violence that can leave victim-survivors facing long-term financial hardship, debt and reduced economic security.
“The Government is committed to ensuring that financial institutions, regulators, and professional service providers play their part in preventing abuse and supporting victim‑survivors.
Mulino says the Committee’s report also included a large number of recommendations directed at the financial services sector.
“The Government is working closely with industry to improve responses to financial abuse and support the adoption of leading practices across the financial system.”
