{"id":66220,"date":"2023-06-14T14:14:54","date_gmt":"2023-06-14T03:14:54","guid":{"rendered":"https:\/\/riskinfo.com.au\/news\/?p=66220"},"modified":"2023-11-14T08:06:32","modified_gmt":"2023-11-13T22:06:32","slug":"qoa-review-decision-the-fine-detail","status":"publish","type":"post","link":"https:\/\/riskinfo.com.au\/news\/2023\/06\/14\/qoa-review-decision-the-fine-detail\/","title":{"rendered":"QoA Review Decision \u2013 The Fine Details"},"content":{"rendered":"

Financial Services Minister Stephen Jones\u2019<\/strong> prepared speech outlining that the Government would adopt 14 of the QoA Review Recommendations set the financial services sector abuzz earlier this week, ahead of a far more detailed statement putting into context which of Michelle Levy\u2019s 22 recommendations were to be accepted in full or in principle and where more consultation was needed.<\/p>\n

Jones’ later statement and Treasury’s Detailed Overview<\/em> <\/a>paper also laid out clearly that final responses on the Delivering Better Financial Outcomes<\/em> package are expected before the end of the year (see also: SoAs Replaced, Risk Commissions Retained<\/a>).<\/p>\n

\"\"<\/a>
Stephen Jones …a roadmap for financial advice reform<\/figcaption><\/figure>\n

Below are some of the detailed highlights from the first work stream which the Treasury paper headlines as Removing regulatory red tape that adds to the cost of advice without benefiting consumers.<\/em><\/p>\n

Best Interests Duty – Consultation on Implementation
\n<\/strong><\/p>\n

The \u201cSafe Harbour\u201d steps, originally designed to protect financial advisors, will be removed from the Best Interest Duty with consultation to determine implementation details and the implications of adopting the remaining parts of recommendation 5 (accept in principle part of recommendation 5).<\/p>\n

Single Form \u2013 No Fee Disclosure Statement<\/strong><\/p>\n

Ongoing fee renewal and consent requirements will be streamlined into a single form, and the requirement to provide a fee disclosure statement will be removed (accept recommendation 8).<\/p>\n

SoA – Consultation on Final Design
\n<\/strong><\/p>\n

Statements of Advice will be replaced with an advice record that is more fit for purpose, with consultation to determine the final design of the replacement (accept in principle recommendation 9).<\/p>\n

Flexibility on Financial Service Guide Requirements<\/strong><\/p>\n

More flexibility will be provided in how financial service guide requirements can be met (accept recommendation 10).<\/p>\n

Classifying Consumers<\/strong><\/p>\n

Standardised consumer consent requirements will be introduced to classify a consumer as a wholesale or sophisticated client (accept in principle recommendation 11).<\/p>\n

Conflicted Remuneration<\/strong><\/p>\n

Certain exemptions to the ban on conflicted remuneration will be simplified and some removed, including:<\/p>\n