New advice direction needs to start now: FSC

25 January 2022
| By Jassmyn |
image
image
expand image

Meaningful reform in 2022 will be the difference between affordable advice or one that continues a course of structural decline, the Financial Services Council (FSC) believes.

FSC policy director for advice, Zach Castles, said in a column to be published in Money Management’s upcoming magazine that the association hoped this year would see policymakers and the industry agree on a more flexible approach to advice.

He said the advice community had reason to hope the Quality of Advice review would mark the end of two decades of regulatory encroachment on the industry.

“If a consumer wants bespoke advice few businesses and advisers have confidence they can provide such advice without falling foul of the regulator,” Castles said.

“Under the current rules consumers must choose between either an expensive full advice plan that is unaffordable for most, or not get advice at all.”

He noted it was pleasing the government’s focus on ensuring financial advice was affordable and accessible, as well as maintaining robust consumer protections.

“Getting meaningful reform in 2022 will be the difference between achieving an efficient, simpler and less costly advice process for consumers, or one that continues on a course of structural decline,” he said.

“Given the prevalence of small businesses in the advice industry there is a narrow window to relieve the cost pressures facing the sector and the time to act is now.”

Castles also said that work needed to be start on a self-regulatory framework for the advice industry to created pathways for new advice professionals, recognised prior learning, and enabled financial advice associations to take a leadership role in regulating and growing their profession.

“The FSC’s hope is that 2022 is the year in which the advice sector strikes off in a new direction and that the Quality of Advice Review successfully charts that course,” he said.                                                

 

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

GG

So shareholders lose a dividend plus have seen the erosion of value. Qantas decides to clawback remuneration from Alan ...

2 months 1 week ago
Denise Baker

This is why I left my last position. There was no interest in giving the client quality time, it was all about bumping ...

2 months 1 week ago
gonski

So the Hayne Royal Commission has left us with this. What a sad day for the financial planning industry. Clearly most ...

2 months 1 week ago

A Sydney-based financial adviser has been banned from providing financial services in the interest of consumer protection after failing to act on conduct concerns. ...

3 weeks 3 days ago

ASIC has cancelled the AFSL of a $250 million Sydney fund manager, one of two AFSL cancellations announced by the corporate regulator....

3 weeks 1 day ago

Having divested its advice business in August, AMP is undergoing restructuring in at least four other departments amid a cost simplification program....

2 weeks 5 days ago