Act boldly on financial advice reform recommendations, says report
Accounting bodies have urged the government to act on the "bold recommendations" of the recently released Quality of Advice Final Report and put an end to the decade-long tinkering with the current financial advice regulations.
According to CPA Australia, the 267-page report, which includes 13 recommendations, is in the public interest and consumers are eager for quality financial advice. The recommendations include redefining 'personal advice', applying a good advice duty to providers, and allowing superannuation trustees to provide advice to members. The report also calls for reduced documentation requirements and the elimination of complex disclosures.
These recommendations will help ensure clients are properly informed and empowered to make better decisions, said CPA Australia's Jane Rennie. "We want financial advice improved, not tied up in regulation and hamstrung by red tape."
The report's author, Karen Levy, stated that the recommendations would make it easier for all advice providers, including accountants, to provide personal advice to their clients and that there was no need to exclude them from the regulatory framework.
Assistant Treasurer Stephen Jones acknowledged the report and said that the government would consult widely on the recommendations. "We want to see an industry with strong professional standards that's accessible for more Australians and look forward to hearing views on achieving that goal," he said.
The latest adviser numbers show a 17% reduction in the number of financial advisers, with 15,529 as of December 31st. CA ANZ superannuation and financial services leader, Tony Negline, welcomed the government's commitment to consult on the report and called for decisive action to reduce the cost of providing financial advice.
As the financial advice industry continues to shrink, the report's recommendations could provide a way forward to improving millions of Australians' financial futures and increasing access to quality, affordable financial advice.
