As the financial advice profession continues to wait on further legislation, industry commentators have encouraged advisers to act now in driving practice efficiency.
Minister for Financial Services, Stephen Jones, recently provided further information about the second tranche of the Delivering Better Financial Outcomes (DBFO) reforms.
It will include:
- Replacing the statement of advice with a more fit-for-purpose client advice record.
- Providing clear rules on what advice topics can be collectively charged for via superannuation.
- Allowing superannuation funds to provide targeted prompts to members to drive greater engagement with superannuation at key life stages.
However, the profession is yet to see further details on the modernisation of best interests duty and the new class of adviser. The government said these outstanding items will be consulted on and combined with the draft legislation to be released in one single package.
Meanwhile, the Coalition threw its support behind advice and the broader financial services sector this week, with shadow treasurer Angus Taylor vowing to introduce a bill to legislate a raft of reforms if elected.
Rather than remaining “on hold” in anticipation of this incoming reform, industry professionals have urged advisers to consider implementing effective changes to their businesses now than wait for formal confirmation.
“The end of another political cycle presents an opportunity to reflect on what has been achieved over the past three years. Despite regulatory stagnation and unfulfilled promises of reform, Australian financial advisers have transformed their profession through innovation and adaptation,” Adviser Ratings described.
“With stable adviser numbers, growing client bases, and profitable practices, the profession has shown it can thrive regardless of political inaction.”
The organisation recognised the past three years has left much of the industry frustrated by the lengthy process of reducing red tape from the Quality of Advice Review and in turn, DBFO.
With the nation heading towards a federal election on 3 May 2025, Adviser Ratings said the advice sector stands at a “pivotal moment”.
“Regardless of the political outcome, practices that continue to invest in technology, streamline their operations, and focus on client-centric service delivery will be best positioned to thrive,” it said.
“The past three years have demonstrated the profession’s resilience and adaptability in the face of the regulatory waiting game. Rather than being defined by government inaction, financial advisers have taken control of their destiny, building more sustainable, profitable, and client-focused businesses.”
Echoing this, a recent DASH webinar also suggested true change in financial advice is achieved by taking a client-focused approach, rather than relying on regulation.
Terri Ho, head of product – adviser solutions at DASH, recognised the feelings of dissatisfaction that legislation has left some advisers with in the past.
“I know we’ve all been through changes in legislation many, many times and in a sense, legislation is never the way we really wanted. We’re never really happy with what the government produces, so it’s up to us to really interpret and make those changes work for us and our practice and our clients,” she said.
“Don’t wait to see what DBFO will deliver – focus on your clients and how to adapt what’s there to the best of your ability.”
