{"id":72109,"date":"2024-06-26T14:11:20","date_gmt":"2024-06-26T04:11:20","guid":{"rendered":"https:\/\/riskinfo.com.au\/news\/?p=72109"},"modified":"2024-07-02T11:39:21","modified_gmt":"2024-07-02T01:39:21","slug":"faaa-supports-qualified-advisers-in-advice-practices","status":"publish","type":"post","link":"https:\/\/riskinfo.com.au\/news\/2024\/06\/26\/faaa-supports-qualified-advisers-in-advice-practices\/","title":{"rendered":"FAAA Supports Qualified Advisers in Advice Practices"},"content":{"rendered":"

The FAAA supports the principle of qualified advisers being employed within AFSLs and advice practices but queries whether the fact this advice needs to be free may mean only larger firms are likely to employ these advisers.<\/p>\n

At a media briefing discussing the association\u2019s outlook for financial advice, FAAA CEO Sarah Abood<\/strong> was asked by Riskinfo<\/em> whether it agreed with the principle of qualified advisers within AFSLS and advice practices (see: Poll Result – Qualified Advisers Inside Advice Practices<\/a>).<\/p>\n

“In summary, yes,” she said, noting that a number of members had raised the possibility,\u00a0 and pointing to a clarification from the Financial Services Minister that there was there was no impediment to existing AFSLs employing qualified advisers.<\/p>\n

\"\"<\/a>
Sarah Abood …the issue that members raised was that they would need to charge for that advice<\/figcaption><\/figure>\n

Abood said FAAA members see these advisers as perhaps a way to start engaging with the children and grandchildren of their existing clients.<\/p>\n

\u201cThe issue that members raised was that they would need to charge for that advice. The cost is likely be substantially less than the cost of a full professional adviser, but nevertheless there aren\u2019t many practices which are big enough, or have big enough margins, to be able offer that service entirely for free,\u201d she said.<\/p>\n

…The FAAA has been advocating in the current round of consultations that there should be no restrictions on charging…<\/p><\/blockquote>\n

The FAAA has been advocating in the current round of consultations that there should be no restrictions on charging for the services of qualified advisers.<\/p>\n

Abood explained the Michelle Levy report proposed the service should it be free, but it also proposed the duty be only be good advice, not the best interest advice. However that changed in the Government\u2019s response to the QoA Review and the advice would now be held to the high standard of the best interest of the consumer.<\/p>\n

\u201cWe see no reason why [charging] shouldn’t be allowed and in fact argue it\u2019s not a level playing field, if small firms aren\u2019t allowed to charge [for this advice] they can\u2019t do it, and then that would effectively restrict this option only to large financial institutions.”<\/p>\n

FAAA general manager of policy, strategy and advocacy Phil Anderson<\/strong> added the FAAA position has been supportive of this new class of adviser \u201c\u2026 provided the scope of the advice they provide is narrowed to something that is more simple advice and the education standard is appropriately high.\u201d<\/p>\n

He says the association believes this could be applied within advice practices, but charging is a challenge.<\/p>\n

\u201cThe issue is whether that charge could come out of the clients\u2019 existing advice arrangement with that licensee, so it’s reliant on income that is otherwise being generated by that practice with that client,\u201d he said.<\/p>\n","protected":false},"excerpt":{"rendered":"

The FAAA supports the principle of qualified advisers being employed within AFSLs and advice practices but queries whether the fact this advice needs to be free may mean only larger firms are likely to employ these advisers. At a media briefing discussing the association\u2019s outlook for financial advice, FAAA CEO Sarah Abood was asked by […]<\/p>\n","protected":false},"author":24,"featured_media":72112,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[282,8],"tags":[],"class_list":["post-72109","post","type-post","status-publish","format-standard","has-post-thumbnail","category-associations","category-compliance-regulation"],"_links":{"self":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/72109","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=72109"}],"version-history":[{"count":0,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/72109\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/media\/72112"}],"wp:attachment":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/media?parent=72109"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/categories?post=72109"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/tags?post=72109"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}