In August 2022, the Quality of Advice Review released its Proposals Paper setting out a range of proposals to improve the accessibility and affordability of financial advice.
Our team has made a formal submission to the Quality of Advice Review. While we strongly support the majority of the proposals outlined in the Proposals Paper, there are some aspects on which we wish to comment. In particular:
- we do not support the proposed expansion of the definition of 'personal advice';
- we suggest that the proposal to deregulate 'general advice' be modified to only apply in respect of 'general advice' that is provided to 'wholesale clients';
- we support in principle the proposal to replace the 'best interests duties' with an obligation to provide 'good advice'. However, we are concerned that the phrase 'reasonably likely to benefit' may be interpreted by industry, regulators or litigants to mean improving the financial position of and akin to achieving superior financial outcomes for the client; and
- we see merit in further expanding the ability for Australians to use their superannuation to pay for financial advice that relates to retirement outcomes.
If you would like to read a copy of our full submission, download a copy here.
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