Gov’t praises independent planners
<[stk -6]>
The man responsible for setting the rules for financial planners has praised independently-owned advisers for their “objective advice” and indicated an expansion of the definition of general advice would be at the heart of impending refinements to current legislation.
“Australians are increasingly wanting professional, objective advice — not just product sales advice,” Parliamentary Secretary to the Treasurer Chris Pearce told delegates at the Association of Independently Owned Financial Planners (AIOFP) annual conference.
He added that the financial services industry as a whole was “adjusting to this demand”.
Pearce said the boundaries on what constitutes general advice could be expanded to make advice more affordable to consumers.
The possible change will be made as part of the second tranche of refinements to the Financial Services Reform Act (FSR), first flagged by Pearce in February.
“Some participants have raised concerns that the definitional scope of general and personal advice limits the amount and quality of advice they can provide,” he told delegates.
Pearce also called for suggestions from the industry on “how we could facilitate a greater willingness on the part of providers to offer advice, particularly more general advice about managing investments, rather than particular product sales advice”.
The first tranche of refinements to FSR involved cutting down disclosure requirements for financial planners by scrapping the requirement to provide additional Statements of Advice, even when switching funds between investment products, if a client’s personal circumstances and the general nature of the advice had not changed.
Recommended for you
As the year draws to a close, a new report has explored the key trends and areas of focus for financial advisers over the last 12 months.
Assured Support explores five tips to help financial advisers embed compliance into the heart of their business, with 2025 set to see further regulatory change.
David Sipina has been sentenced to three years under an intensive correction order for his role in the unlicensed Courtenay House financial services.
As AFSLs endeavour to meet their breach reporting obligations, a legal expert has emphasised why robust documentation will prove fruitful, particularly in the face of potential regulatory investigations.
