The first week of September saw Quality of Advice Review lead Michelle Levy joined Conexus Financial managing editor Julia Newbould to discuss her proposals.

Naturally, the biggest concern about Levy’s recommendations – and the advice review as a whole – is the potential for large institutions like the big banks and super funds to give advice that could be potentially conflicted.

Levy has attempted to quash any concerns, saying her ‘good advice’ regime will prevent advice that’s not in the best interest of the consumer being given.

“The point of my proposal is to look at the content of advice and then it is up to the provider of the advice or the licensee to decide what is it that [they] need to do to be reasonably satisfied this is good advice,” Levy said.

Additionally, best interest duty wouldn’t be completely repealed.

“The best interests duty in the Corporations Act would be repealed, but there would still be a best interest duty under the Code of Ethics.”

A joint submission to the advice review from consulting firms Encore Advisory, Finura Group and Tangelo Advice Consulting argued that relevant and non-relevant providers should be regulated separately.

“It’s the concept of making it clear to the client what model they’re engaging with and where it is the restricted model or the independent model,” Encore Advisory executive chair Tom Reddacliff said.

The FPA and CoreData commenced undertaking research to establish the full spectrum of advice costs.

“You can’t say the average cost is the real cost because there is no average,” Coredata founder Andrew Inwood told Professional Planner.

Coming together

After the Quality of Advice Review ‘good advice’ proposals was revealed at the end of August, the Financial Planning Association and Association of Financial Advisers scheduled a joint media briefing to discuss the recommendations.

However, it was slightly misdirected as both associations used the opportunity to announce their intention to explore a merger.

A member vote is planned for 2023 which will require 75 per cent of both membership bases to approve.