The FSC has committed to a joint submission to the Quality of Advice Review between 11 advice associations that is aligned to the FSC’s policy positions.
Across all submissions publicly released there is strong alignment between what different submitters asked for and the FSC’s proposed personal framework advocating for the abolition of the safe harbour, clear definitions of advice and information and simplified documentary requirements.
Areas of alignment include:
- Review of the advice process through the lens of the consumer and simplify consumer facing advice
- Removal of the safe harbour steps, clarity around how the Best Interests Duty is met
- Review key terms of advice (personal advice and general advice) aligned with consumer understanding
- Retention of the Life Insurance Framework (LIF)
- Retention of the Australian Financial Services License (AFSL)
- Support for principles-based regulation
- Clarified obligations of the licensee and individual accountability of the financial advisers to remove duplication and maintain appropriate consumer protection
- Increased recognition and responsibility of the financial adviser in the advice process
- Stronger and more holistic engagement model from ASIC
- Proposed measures to improve access to data and improve financial literacy.
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