MenuFinancial Advice Association of Australia (FAAA) CEO Sarah Abood has congratulated Financial Services Minister Steven Jones on the strong response to the Quality of Advice Review.
“We are particularly pleased to see the support for recommendations such as the removal of Fee Disclosure Statements, rationalisation of fee consent, removal of the Best Interests Duty Safe Harbour steps and in-principle support for a major overhaul of financial advice documentation,” Ms Abood says.
“These phase 1 responses show that the concerns of our sector have been heard. It is a sensible package that will alleviate much of the unnecessary red tape involved in providing financial advice.
“The Government has also provided certainty with the continuation of life insurance commissions, whilst introducing a consent obligation that is covered through existing client approval arrangements.”
She said that Minister Jones has clearly recognised the significant challenges facing the advice profession, and their urgency, and has responded accordingly.
“We think that this first package of reforms will be a big step forward in helping advisers deliver more advice for Australians, and we look forward to seeing these implemented soon.
“There are other recommendations that the Government has accepted require more consultation, and how best to safeguard the advice Australians will receive from their super funds is an important part of this.
“The Government has signalled it is open to discussion on matters such as the minimum education requirements for super fund employees and representatives, the scope of the advice and the duty that advice would need to meet.
“We support the sensible consideration of these further recommendations and will work constructively with the Government in this next phase of consultation,” Ms Abood says.
The FAAA will respond fully to this package of recommendations later this week with an update to members.
