Why getting Tranche 2 of DBFO right is so important

Kelly Power (left), Blake Briggs and Aleks Vickovich

This podcast is produced in partnership with Colonial First State

The first tranche of the government’s Delivering Better Financial Outcomes bill reforming financial advice laws was plagued by ferocious debate and a series of drafting errors despite being originally slated as a bill of “quick wins”.

But industry leaders are preparing for what they fear will be an even more contentious round of policy formulation and consultation, as Treasury prepares draft legislation allowing super funds, banks and insurers to play a bigger role in advice and usher in the controversial new category of “qualified advisers”.

In the second episode of the new season of Professional Planner’s Shape of Advice podcast, Colonial First State CEO, superannuation, Kelly Power and Financial Services Council CEO Blake Briggs talk to Conexus Financial editor-in-chief Aleks Vickovich about the road to reform from here.

Power and Briggs made the case for why DBFO should matter to everyday Australians and urged the government to stay the course, while opening up about some of the new commercial opportunities it may open up for the profession.

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‘But-for’ compensation will live on, just not at the CSLR

‘But-for’ compensation will live on, just not at the CSLR

The Australian Financial Complaints Authority will continue to issue controversial “but-for” determinations after 30 June next year, even though investors who lodge complaints with it after that date will not be eligible for “but for” compensation from the Compensation Scheme of Last Resort. This is one of the reforms aimed at putting the CSLR on a more sustainable financial footing, and at easing the funding burden on the advice sector.

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