The Joint Association Working Group (JAWG) has submitted a letter to Assistant Treasurer and Financial Services Minister Stephen Jones outlining the elements the federal government must incorporate in its response to the Quality of Advice Review to ensure more Australians will have access to financial advice.
Firstly, the JAWG has called on the government to implement an advice framework that will allow consumers access to scaled advice, which means they will be able to receive the advice they want at the appropriate time and via their preferred medium, including electronic means.
Next, the collective of industry bodies has suggested support for a professional financial advice sector is needed that will maintain a level playing field while increasing the number of practitioners in the industry.
Thirdly, the letter requested the removal of regulations representing a significant burden to advice providers and that do not offer any consumer benefit.
It was also proposed the minister enable quality advice to be provided in a more timely and cost-effective manner.
Finally, the JAWG called for regulatory consistency where the parameters applied to financial advice are not constantly being changed.
Further, the joint associations recognised a macro approach to the situation had to be adopted.
“We believe that many of the final recommendations of the Quality of Advice Review are aimed at achieving these objectives. But Australian consumers will be left behind without the adoption of a holistic package of reforms. The reforms must extend beyond easy wins such as streamlining fee disclosure requirements and iron out obligations like the design and distribution obligations,” the letter noted.
With regard to the timeframe associated with the implementation of the Quality of Advice Review recommendations, the JAWG said the package of reforms should be tabled in parliament this year after industry consultation.
The group includes the SMSF Association, Financial Planning Association of Australia, Association of Financial Advisers, Chartered Accountants Australia and New Zealand, Financial Services Council, CPA Australia, Boutique Financial Planning Principals Association, Institute of Public Accountants, Financial Services Institute of Australasia, Licensee Leadership Forum, Stockbrokers and Investment Advisers Association and The Advisers Association.
