Renaming ‘general advice’ crucial to digital offerings: FPA

22 January 2020
| By Mike |
image
image
expand image

The Financial Planning Association (FPA) has sought to ramp up pressure on the Federal Government for the formal removal of the term “general advice”, this time in the context of enhancing digital advice delivery.

While making clear that face to face client relationships would remain pivotal for financial advisers, the FPA has claimed that renaming “general advice” will enhance digital advice delivery.

It said that guidance for consumers would be importance to help them distinguish between “tailored advice”, “guidance” and “general advice”.

The FPA’s messaging is contained in a submission to the Senate Selection Committee on Financial Technology and Regulatory Technology, in which it said that digital advice delivery was usually considered as “general advice” and “any future concern of removing general advice will ultimately inhibit what digital advice can be provided”.

“The government can ensure that the future delivery of digital advice remains available for the FinTech community to develop by supporting [the Australian Securities and Investments Commission] ASIC to rename general advice,” it said.

The FPA submission said ASIC had consumer tested and consulted stakeholders on potential new terms to rename general advice and the FPA would continue providing support in renaming the term.

“A change in terms would also enhance a consumer’s understanding of what information is presented to them from digital services and may prompt consumers to seek more personalised advice after receiving personal advice,” it said.

Elsewhere in its submission, the FPA said there was a strong perception that robo-advice would replace human financial planners but it disagreed with this scenario.

“The FPA believes that financial planners will work hand-in-hand with robo-advice, and the benefits of fintech will ultimately be passed down to consumers,” it 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