Industry collaboration will be key in 2022
Collaboration between regulators, policymakers and advisers will continue to create greater efficiencies in the advice industry in 2022 as it adapts to three years of “prolific regulatory change”, according to Consultum Financial Advisers.
Speaking to Money Management, Consultum Financial Advisers chief executive, Peter Ornsby, said it was clear many advisers were experiencing “change fatigue” but that regulatory pressure was driving more collaboration, especially over the last six months.
“I think we’ve got to continue to foster greater collaboration [between regulators, policymakers and advisers] because that is going to be important for driving a better outcome for the industry, but more importantly for clients,” Ornsby said.
“We want to see more clients getting advice everyone understands… we’ve just got to make it more affordable for them.”
Ornsby pointed to a financial services legislation review by Australian Law Reform Commission as a good example of proactive consideration and collaboration by Government, where consultation was sought about simplifying the Corporations Act.
“And what we are starting to see I think, is that all parties are taking much better steps to actually understand each other's wants and needs,” Ornsby said.
He said over the last six months he has witnessed a trend of the Australian Securities and Investments Commission engaging in more conversations with licensees and attending more forums.
“One of the priorities of the regulator is to drive the costs of delivering advice down and they are looking at the industry for ideas and thought leadership on how that can be achieved,” Ornsby said.
Ornsby expected the rate of regulatory change to slow next year allowing advisers to implement appropriate systems and processes to manage their obligations, something he thought could be achieved with collaboration.
“I think people understand the merit in regulation, so no one's out here to be critical in any way, because I don't think that's good for everyone,” he said.
“But if we can work together in making the system more efficient for everyone, and that may even be collaboration through the exchange of ideas, collaboration in submissions… that will ensure that when things roll out, more has been considered.”
AUTHOR
Liam Cormican
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