{"id":5837,"date":"2010-04-28T07:29:13","date_gmt":"2010-04-27T20:29:13","guid":{"rendered":"https:\/\/riskinfo.com.au\/news\/?p=5837"},"modified":"2020-02-06T08:09:38","modified_gmt":"2020-02-05T21:09:38","slug":"adviserindustry-response-to-government-reform-package","status":"publish","type":"post","link":"https:\/\/riskinfo.com.au\/news\/2010\/04\/28\/adviserindustry-response-to-government-reform-package\/","title":{"rendered":"Adviser\/Industry Response to Government Reform Package"},"content":{"rendered":"

There has been swift and varied reaction from the financial services\u00a0sector following the release\u00a0of the Federal Government’s\u00a0Future of Financial Advice<\/em> reform package earlier this week, which included the intention to ban commissions from 1 July 2012 (see Government Bans Commissions…<\/a>).<\/p>\n

We have summarised\u00a0a range of responses from product manufacturers, associations and individual advisers:<\/p>\n

<\/p>\n

Product Manufacturers<\/strong><\/p>\n

The two most prominent advocates of the move to fee for service have been MLC and AMP, and it has been these two organisation who have been first to release their response:<\/p>\n

MLC<\/span><\/p>\n

A spokesperson representing MLC & NAB Wealth has commented:<\/p>\n

“We welcome Minister Bowen’s proposed reform agenda which we believe will help drive greater trust in the financial advice profession. It addresses a number of the core issues that have been holding the reputation of the industry back including commissions and volume based payments…”<\/em><\/p>\n

AMP<\/span><\/p>\n

AMP Financial Services Managing Director, Craig Meller<\/strong>, said AMP is supportive of the Government’s steps to increase consumer confidence in the financial services industry:<\/p>\n

\u00a0“As an industry we need to ensure Australians have confidence in the quality of the advice they receive and that it is delivered as efficiently and cost effectively as possible,”<\/em>said Mr Meller.<\/p>\n

Associations<\/strong><\/p>\n

Associations representing financial institutions have issued statements strongly supporting the Future of Financial Advice reforms, while associations representing financial advisers have offered qualified support for some of the reform initiatives:<\/p>\n

IFSA<\/span><\/p>\n

IFSA CEO, John Brogden<\/strong>, commented, “… the Federal Government’s announcement on reforms to financial advice is a win for consumers and will build trust between financial advisers and the community.”<\/em><\/p>\n

“Our objective is to create a financial services industry where advice is transparent, of the highest quality and available to all Australians. This package, in addition to industry initiatives to enhance customer control and ban commissions on superannuation, will substantially achieve these outcomes,”<\/em>said Mr Brogden.<\/p>\n

ASFA<\/span><\/p>\n

The Association of Superannuation Funds of Australia believes Superannuation fund members will get better access to advice about their retirement as a result of the reform measures announced by the Federal Government.<\/p>\n

ASFA CEO, Pauline Vamos<\/strong>: “The Government’s response recognises the importance of delivering single\/limited issue, cost-effective objective advisory services particularly in the superannuation and retirement area.”<\/em><\/p>\n

FPA<\/span><\/p>\n

The FPA offered qualified support, welcoming ‘… a number of reforms’.<\/p>\n

Acting FPA CEO, Deen Sanders<\/strong>, said these reforms would play an instrumental role in improving transparency and investor protection in the financial planning industry, adding these reforms represent the most significant changes to financial planning since the Financial Services Reform Act in 2003:<\/p>\n

there will be positive and negative impacts on the advice industry…<\/h6>\n

“Given the scale of the reform package, there will be positive and negative impacts on the advice industry, so implementation will take time and require careful consideration,”<\/em> said Mr Sanders.<\/p>\n

AFA<\/span><\/p>\n

The AFA also welcomed the release of the Government’s reform measures, saying the broad thrust of the Government’s response is sensible, but adding it has major concerns in a number of key areas, including adviser and consumer choice over remuneration:<\/p>\n

The AFA has argued consistently that consumers require choice:<\/em><\/p>\n