Treasury has tabled regulations to support the first tranche of reforms in the Delivering Better Financial Outcomes package, which address the government’s initial response to the Quality of Advice Review (QAR).
The Treasury Laws Amendment (Delivering Better Financial Outcomes) Regulations 2024 contain five parts, with the first four parts in effect as of yesterday, while the fifth commences on 9 July 2025, allowing a 12-month transition period for related measures in the Treasury Laws Amendment (Delivering Better Financial Outcomes and Other Measures) Act 2024.
The first amendment updates the Electronic Transactions Regulations to reflect changes in the Superannuation Industry (Supervision) Act, enabling superannuation documents, such as written consents or requests, to be electronically sent, received and stored.
The second change removes the requirement for fee disclosure statements and ensures clients provide consent when entering or renewing ongoing fee arrangements.
The third modification allows financial advisers to either give clients a financial services guide directly or make the information available online.
The fourth adjustment revises the rules on conflicted remuneration by banning benefits from product issuers that could influence advisers’ recommendations, while benefits from retail clients remain unaffected.
The fifth alteration clarifies financial advisers can continue receiving commissions on general insurance products, provided they obtain informed consent for personal advice. When general advice is provided, no consent is required.
The government previously opened a consultation period on the regulations from June to July 2024.
The Treasury Laws Amendment (Delivering Better Financial Outcomes and Other Measures) Bill 2024 was tabled in the House of Representatives in March, with the Financial Services Council expressing concerns regarding the remaining requirement for both financial advisers and superannuation trustees to approve advice fee deductions from super accounts.
