{"id":65421,"date":"2023-04-18T12:32:53","date_gmt":"2023-04-18T01:32:53","guid":{"rendered":"https:\/\/riskinfo.com.au\/news\/?p=65421"},"modified":"2024-10-30T08:41:00","modified_gmt":"2024-10-29T22:41:00","slug":"call-for-guardrails-around-some-qoa-recommendations","status":"publish","type":"post","link":"https:\/\/riskinfo.com.au\/news\/2023\/04\/18\/call-for-guardrails-around-some-qoa-recommendations\/","title":{"rendered":"Call for ‘Guardrails’ Around Some QoA Recommendations\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0"},"content":{"rendered":"

Guardrails need to be put in place before implementing some of the Quality of Advice recommendations related to non-relevant providers giving \u2018good advice\u2019, or Australia will likely face a return to vertical integration, says The Advisers Association.<\/p>\n

TAA CEO, Neil Macdonald<\/strong> says in a statement that while the association broadly supports the Quality of Advice Review recommendations \u201c\u2026we believe great care must be taken before implementing some of them, or we may face a back-to-the-future scenario that did not serve Australians well.\u201d<\/p>\n

\"\"<\/a>
Neil Macdonald …there is \u00a0 a world of difference between giving people general information and giving them personal financial advice that meets their needs…<\/figcaption><\/figure>\n

TAA says the guardrails should be around:<\/p>\n

    \n
  • Who should be permitted to deliver personal financial advice<\/li>\n
  • The extent of the advice they give<\/li>\n
  • The minimum education and qualifications they hold<\/li>\n
  • The obligation to provide \u2018good advice\u2019<\/li>\n<\/ul>\n

    Macdonald says it is clear, particularly as a large percentage of the population nears retirement \u201c\u2026that we need to enable more people to give personal financial advice.<\/p>\n

    “But while the advice profession continues to debate what the future should look like, industry funds have continued giving advice and are taking over the role previously played by the banks.\u201d<\/p>\n

    TAA notes however that the \u201c\u2026relatively low Statement of Advice production from the industry funds’ sector appears to indicate that general advice is being provided, where personal advice is likely required, especially in preparation for retirement.\u201d<\/p>\n

    Macdonald says there is \u00a0\u201c\u2026a world of difference between giving people general information and giving them personal financial advice that meets their needs.\u201d<\/p>\n

    …there is also a risk that general advice will continue to be provided instead of ‘good’ personal advice, and that doesn\u2019t address the issues of the past…<\/p><\/blockquote>\n

    \u201cThere is also a risk that general advice will continue to be provided instead of ‘good’ personal advice, and that doesn\u2019t address the issues of the past.\u201d<\/p>\n

    He adds that the QoA Review recommendation to expand the definition of personal advice to require non-relevant providers to provide \u2018good advice\u2019 is a very important consumer protection and must be enforced if there is no Best Interests Duty.<\/p>\n

    \u201cIf it is not, then complex retirement advice could easily be provided to members of a super fund, without any consideration of issues that profoundly impact consumers in retirement \u2013 for example, Centrelink benefits, who and when to move to pension phase etc,\u201d Macdonald says.<\/p>\n","protected":false},"excerpt":{"rendered":"

    Guardrails need to be put in place before implementing some of the Quality of Advice recommendations related to non-relevant providers giving \u2018good advice\u2019, or Australia will likely face a return to vertical integration, says The Advisers Association. TAA CEO, Neil Macdonald says in a statement that while the association broadly supports the Quality of Advice […]<\/p>\n","protected":false},"author":24,"featured_media":65424,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[282,8],"tags":[],"class_list":{"0":"post-65421","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-associations","8":"category-compliance-regulation"},"_links":{"self":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/65421","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/users\/24"}],"replies":[{"embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/comments?post=65421"}],"version-history":[{"count":0,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/65421\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/media\/65424"}],"wp:attachment":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/media?parent=65421"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/categories?post=65421"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/tags?post=65421"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}