REDUCING THE COST OF PROVIDING FINANCIAL ADVICE BY ALMOST 40 PER CENT
Our White Paper on financial advice – available here – outlines the FSC’s platform to reduce the cost of advice and unnecessary regulation and duplication.
TIMELINE FOR REFORM OF THE FINANCIAL ADVICE SECTOR
| BY 2023 | BY 2026 | BY 2030 |
|---|---|---|
| > Safe harbour steps abolished > Code of Ethics amended > Letter of Advice with scalable advice obligations introduced > Statement of Advice and Record of Advice abolished > Wholesale client asset test threshold increased and indexed > Breach reporting framework revised > Consult and clarify framework for licensees and advisers to support individual registration Regulatory Guidance to become more exemplary than prescriptive > ASIC Advice Unit established | > Legislate personal advice and general information – abolish redundant terms and separate product from advice > Update licensing and registration framework > Introduction of a ‘practising certificate’ > Prior learning and equivalent pathways recognised > Accreditation to be conducted by universities and Registered Training Organisations (RTOs) Commencement of principles-based regulatory framework > Tax deductibility or rebate for all financial advice | > Self-regulation by the industry > Principles-based regulatory framework fully implemented > Increased role for professional bodies and industry standards |
| ONGOING REFORMS |
|---|
| > Data standardisation > Measures to enable financial advice providers to access consumer data |
KPMG determined that the advice process costs $5334.64. Their analysis shows that should the FSC’s core recommendations (abolition of the safe harbour steps, introduction of a Letter of Advice, and relabeling of advice definitions) be fully implemented that: