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
ASIC has released the results of its first adviser exam to be held in 2025 with 241 candidates attempting the test.
Quarterly Wealth Data analysis has uncovered positive improvements in financial adviser numbers compared with losses in the prior corresponding period.
Holding portfolios that are too complex or personalised can be a detractor for acquirers of financial advice firms as they require too much effort to maintain post-acquisition.
As the financial advice profession continues to wait on further DBFO legislation, industry commentators have encouraged advisers to act now in driving practice efficiency.