{"id":74611,"date":"2024-11-05T10:51:35","date_gmt":"2024-11-05T00:51:35","guid":{"rendered":"https:\/\/riskinfo.com.au\/news\/?p=74611"},"modified":"2024-11-07T11:01:53","modified_gmt":"2024-11-07T01:01:53","slug":"new-bill-aims-to-streamline-the-advice-process","status":"publish","type":"post","link":"https:\/\/riskinfo.com.au\/news\/2024\/11\/05\/new-bill-aims-to-streamline-the-advice-process\/","title":{"rendered":"New Bill Aims to Streamline the Advice Process"},"content":{"rendered":"

A Private Members\u2019 Bill which aims to streamline the engagement process between a financial adviser and their client, has been introduced into Parliament by Chief Opposition Whip and Member for Forde, Bert van Manen<\/strong>.<\/p>\n

The Explanatory Memorandum on the Corporations Amendment (Streamlining Advice Process) Bill 2024<\/a> says it \u201c\u2026provides for the creation of a clear and concise Letter of Engagement, prior to any financial advice being provided, and streamlined Record of Advice supplied to the client by a providing entity.\u201d<\/p>\n

\"\"<\/a>
Bert van Manem<\/figcaption><\/figure>\n

It states that this confirms \u201c\u2026 that a clear and transparent agreement is in place, before any advice is provided, while standardising the administrative requirements for all types of advice provided.\u201d<\/p>\n

The memorandum says the Bill also reduces the administrative burden on providing entities, through the streamlined process of engagement created, for all forms of advice sought.<\/p>\n

Current fee disclosure requirements will remain unchanged.<\/p>\n

It notes the changes outlined in the Bill are informed by, and build upon, Michelle Levy\u2019s<\/strong> 2022 Quality of Advice Review<\/em>, specifically \u2018Recommendation 9 \u2013 Statement of Advice\u2019 and the \u2018Good Advice Duty\u2019.<\/p>\n

…the Letter of Engagement will state the scope of advice sought and agreed to…<\/p><\/blockquote>\n

The explanatory document adds that the Letter of Engagement will state the scope of advice sought and agreed to.<\/p>\n

\u201cThis will ensure there is a clear understanding and agreement between the providing entity and the client on the scope of advice to be provided.\u201d<\/p>\n

In a statement van Manem says simplification is at the heart of his Private Members\u2019 Bill and that it comes after considerable conversation with the finance industry.<\/p>\n

He says the Bill has been brought forward \u201c\u2026due to the Government\u2019s continued inaction on the issue.<\/p>\n

\u201cPeople in the industry feel that the Albanese Government has not done enough, and certainly not done anything in a timely enough manner, to deal with some well-recognised issues,\u201d he says.<\/p>\n

\u201cAfter a lot of years of seeing the system become more complex and more expensive for everybody involved, we are determined to make life simpler for all.\u201d<\/p>\n

He says recommendations of Michelle Levy\u2019s Quality of Advice Review in relation to Statements of Advice, which are yet to be implemented by the Government, have helped form the basis of the Bill.<\/p>\n

\u201cLevy\u2019s review found that SoAs are universally criticised for being too complex and adding significantly to the cost and regulatory burden of providing financial advice.\u201d<\/p>\n

…the Bill is intended to support the financial services industry by removing red tape…<\/p><\/blockquote>\n

van Manen says the Bill is intended to support the financial services industry by removing red tape and allowing them to focus on providing financial advice to Australians.<\/p>\n

\u201cFinancial planners and advisers have waited … for the Albanese Government to act on Levy\u2019s recommendations. Time is running out before an election is called and I have decided to act by bringing forward the most impactful reforms for the advice community.\u201d<\/p>\n

He adds that the existing SoA requirement is \u201c\u2026burdensome, repetitive and rarely read by clients, with its complexity leading to significant additional administrative work for financial advisers at an increased cost to the client.<\/p>\n

The Bill was seconded by the Shadow Assistant Treasurer and Shadow Minister for Financial Services, Luke Howarth<\/strong>.<\/p>\n

Click here<\/a> for more information on the Bill.<\/p>\n","protected":false},"excerpt":{"rendered":"

A Private Members\u2019 Bill which aims to streamline the engagement process between a financial adviser and their client, has been introduced into Parliament by Chief Opposition Whip and Member for Forde, Bert van Manen. The Explanatory Memorandum on the Corporations Amendment (Streamlining Advice Process) Bill 2024 says it \u201c\u2026provides for the creation of a clear […]<\/p>\n","protected":false},"author":24,"featured_media":74618,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3,8282],"tags":[],"class_list":["post-74611","post","type-post","status-publish","format-standard","has-post-thumbnail","category-general","category-government"],"_links":{"self":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/74611","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=74611"}],"version-history":[{"count":0,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/74611\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/media\/74618"}],"wp:attachment":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/media?parent=74611"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/categories?post=74611"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/tags?post=74611"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}