ASIC confirms talks with Treasury on QOA Review
The Australian Securities and Investments Commission (ASIC) has confirmed it has been ongoing talks with regards to Michelle Levy’s Quality of Advice Review, including with Treasury as it ‘stress-tests’ the final report.
Speaking at the Association of Superannuation Funds Australia (ASFA) Conference in Brisbane, ASIC Commissioner Danielle Press shared the corporate regulator’s perspective on Levy’s recommendations.
“Our view, and my view, is when we make changes to this part of the system, we need to make sure they are demonstrably better than where we are today,” she told the audience.
“Michelle and I have had a number of different conversations and reasonable minds, on these things, can differ.
“I think that’s where the Government is at – how do you take the reasonable minds that are differing and come down to an answer that is going to make the system demonstrably better?”
As the Government planned to stress-test the recommendations and undertake further consultations, ASIC awaited further details on how the recommendations could be implemented into law and what its role could look like in the new system, Press stated.
“We are talking to Treasury, we are talking to Government, as you would expect a regulator would do. We’re talking to industry as well,” she agreed.
Press also voiced her concerns around consumer protection and the importance of balancing it with access to advice and the quality of that advice.
“Bad advice is actually worse than no advice and that’s well and truly acknowledged in the report,” she said.
In all this, she believed super funds had a really important role to play in this space as “trusted partners” for their members.
“There’s a lot that you can do today under the current law, actually.
“I’d encourage funds to just get on with some of this stuff, regardless of where this ultimately lands, because you’ll be doing it anyway.”
AUTHOR
Rhea Nath
Recommended for you
Following an extraordinary general meeting today, Dixon Advisory parent company E&P Financial Group’s shareholders have voted on its proposed delisting from the ASX.
While overall financial adviser numbers have dipped below 15,500 this week, Rhombus Advisory is experiencing growth and approaching 500 advisers in its ranks.
Iress’ Xplan continues to dominate the financial planning software market with a multitude of uses, according to Netwealth research, despite newer players battling for a piece of the pie.
ASIC has shared the percentage of breach reports related to financial advice in FY24, noting increased reporting by smaller AFSLs.
