FSC comments on Financial Advice Reform bill

The Financial Services Council (FSC) has released a statement regarding the federal government’s introduction of a part of its Delivering Better Financial Outcomes reform on financial advice.

According to the council, the financial services industry shared the government’s objective of making financial advice more affordable and accessible for Australian consumers. However, it also pointed out that the government should be committed to removing red tape and duplication on financial advisers as well as their clients every chance that they get.

“Industry encourages the assistant treasurer to make the most of the opportunity to remove onerous duplication and red tape that has contributed to advice becoming unaffordable for millions of Australian consumers,” said FSC CEO Blake Briggs (pictured).

The FSC said that the first round of measures that were introduced will be making positive changes that were supported by the industry. This includes the streamlining fee consent requirements, enabling even more flexibility around the provision of Financial Services Guides, and also the tightening of the ban on conflicted remuneration.

However, the FSC expressed concerns about the failure to remove regulatory duplication, which required financial advisors and superannuation trustees to approve the advice fee deductions from superannuation accounts.

“We support the government’s aim of ensuring more Australians can access financial advice through their superannuation, but despite the many positives in the bill we are concerned that it will entrench unnecessary obligations on superannuation trustees that would be costly to maintain and act against the delivery of affordable financial advice,” said Briggs.

Briggs said that the council encouraged the government to continue its consultation through the parliamentary processes in order to address the concerns of the industry and make sure that Australian consumers will be able to access financial advice that is more affordable.