Treasury’s review of financial advice, led by Allens lawyer Michelle Levy, would pave the way for banks to return to the financial advice industry.
But the academic added that he agreed with the premise that “financial advice rules can be needlessly complex” and that “the sheer amount of regulation adds cost”. He also noted Ms Levy’s caveat that it may be appropriate for the best interests duty to remain in place for some forms of complex advice, or where a commission is paid.
Financial Counselling Australia CEO Fiona Guthrie lamented that the best interests duty was “the only bulwark” consumers have against poor advice, while Gerard Brody of the Consumer Action Law Centre said Australia should “not be walking back” the principles of consumer protection.But industry representatives said encouraging new forms of digital and affordable advice would have widespread benefits for consumers – only 10 per cent of whom currently receive professional advice.
AMP director of advice Matt Lawler said he was encouraged by the proposals to simplify advice processes and use technology to deliver advice to more people.“The consultation paper acknowledges what we and many in the financial advice profession have been saying for some time, that over-regulation has had a severe impact on the ability of advisers and licensees to provide an accessible and affordable service to Australians,” he said.
A survey conducted by Ms Hunt and business broker Steve Prendeville earlier this year found widespread mental ill health among peers in the advice sector.
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