The Financial Advice Association Australia “welcomes” the opposition’s renewed energy for financial advice but is looking for clarity from Labor, the minor parties and independents on advice issues.
The opposition announced its policy outline for financial advice should it form government after the federal election on 3 May, including a “deregulation taskforce”, as well as a commitment to change the regulatory settings for ongoing fee arrangements, life insurance commissions and the education standard.
Additionally, it would seek these reforms in the first 100 days of taking office, including legislating the Quality of Advice Review in full.
A media statement released by the association noted the proposed measures aligned with their five key priorities for the next government.
In particular, the FAAA has sought commitments to fixing the Compensation Scheme of Last Resort, granting adviser access to the ATO portal, completing the QAR reforms, supporting new entrants to the financial advice profession, and cutting regulatory red tape.
“We are encouraged to see a number of the Coalition’s proposed measures align with the FAAA’s five key priorities for the next federal government,” FAAA chief executive Sarah Abood said.
The FAAA has been engaging with candidates from both major parties, as well as the minor parties and independents for support on various advice issues.
“We continue to seek clarity from Labor, the minor parties and the independents regarding their positions on these same asks, demonstrating their support for the advice profession and the great work we do helping Australian consumers be better off,” Abood said.
Minister for Financial Services Stephen Jones will not be the next minister should Labor retain government after the member for the Division of Whitlam announced his retirement, but said his unnamed successor will continue to carry the mantle for advice reform.
The backing of the FAAA comes as the Coalition seeks to repair its reputation with the advice community after facing blowback for its handling of regulatory reform which saw adviser numbers drop from over 28,000 at the start of 2019 to under 17,000 before Labor came into power after the 2022 election.
The Coalition announced a target of bringing the industry up to 30,000 advisers, just above the level it was before the final report of the Hayne royal commission was released near the start of 2019, when advice numbers were at its peak.
To do this, the Coalition said the target will be embedded in ASIC’s Statement of Expectations – the formal outline of expectations the government gives the regulator – along with changing the education standard and making it easier for accountants to provide financial advice.
“A numerical target for rebuilding adviser numbers is a helpful signal of intent, though this must be matched by action that makes the profession more viable and attractive to new entrants,” Abood said.
The association also wants a standardised fee consent form, which was part of the first tranche of DBFO legislation – the Labor government’s response to the QAR – but requires the minister to mandate an industry document.
