Advice regulation isn't particularly well-designed, but with some holistic thinking and a tweaked mandate for the Single Disciplinary Body the industry can reshape into something that is fit for purpose. Conrad Travers and Selin Ertac write for Professional Planner.
The regulator has confirmed it is aware super funds are sending letters out to licensees asking them to confirm that every member has received the advice they paid for before the fund will release the fees. But ASIC’s blessing came with a warning.
The regulator’s promise to reduce compliance costs doesn’t gel with their hard line on ‘lookback’ requests, advisers say. Fear still runs rife in the industry and is stifling efforts to reduce the cost to serve.
While the coronavirus crisis has played havoc with portfolios and dramatically changed the way advisers work, an ongoing study from researcher Investment Trends – in partnership with Professional Planner – reveals it’s still not the heaviest burden for advisers.
The loosening of compliance around ‘crisis’ superannuation advice may be clunky and ill-fitting, but it is a welcome step in the right direction and if applied correctly by the industry could see a broadening of similar regulatory relief measures.