The Financial Advice Association Australia (FAAA) has congratulated the Albanese government on its return to power, but called on it to begin reforms to the advice sector to improve the provision of advice and boost the profession’s growth.
FAAA chief executive Sarah Abood reiterated the association’s call for the government to act on its five key recommendations, including an overhaul of the Compensation Scheme of Last Resort (CSLR).
Abood added the government should also focus on reducing costs, fostering professional growth and enhancing consumer access to advice.
“One of the clearest messages from our members is that well-meaning but overly complex regulation has made financial advice harder to access and more expensive,” she stated.
“We need to cut unnecessary red tape and ensure that advisers can focus on delivering great outcomes for their clients.
“We continue to urge the government to fix the CSLR so that financial advisers are not unfairly burdened by the cost of product failures. A cap on the advice levy and a more equitable funding model are essential.”
She said the body was committed to working with the government and new financial services minister, once appointed, to achieve significant reform.
“We congratulate the returning government and look forward to working closely with them to deliver meaningful reforms that support professional financial advice,” she said.
“Australians are increasingly recognising the vital role that quality advice plays in achieving financial well-being. This is a time for genuine policy progress and we are ready to assist the government in delivering it.”
She reaffirmed the FAAA would collaborate with the government on policy areas that improved the sustainability and accessibility of financial advice and removed long-standing barriers to enter the industry.
“We must make it easier for talented individuals to join our profession. That includes offering financial support to employers of professional year candidates, making the exam more accessible and ensuring flexibility in the education framework,” she said.
“We are optimistic about the opportunities ahead and confident that by working together we can create a more sustainable, fair and accessible financial advice system for the benefit of all Australians.”