In his outlook for the new year, Phil Anderson, CEO of the Association of Financial Advisers (AFA), has reiterated his support for Michelle Levy’s ‘revolutionary’ and ‘brave’ ideas with the Quality of Advice Review.
Speaking on the significance of this year for the advice community in AFA’s Gen Next Podcast, he hoped the Government would implement “fundamental change” with the review’s recommendations.
“We’ve still got some vigorous debate to go through, but I’m quite optimistic about the review. It’s now in the hands of the Government and [Minister for Financial Services Stephen Jones] in particular,” Anderson said.
“They could choose to put it all through or choose to cherry-pick from it. We hope they are as brave as Michelle has been, and that we get really fundamental change as a result.”
The AFA chief executive hoped for a Government response to the review by April, and following potential consultations by the Treasury, even legislation tabled in the Parliament by the end of 2023. However, regulatory change in action was not expected until at least next year.
“What I would suggest is that we’re not necessarily going to be at a point where we would describe, by the end of 2023, that we’ve got tailwinds. But I think, now no longer do we have this sense of strong headwinds that we’ve been going through for a number of years.”
He also noted the importance of continuing to encourage young people into financial planning, which remained one of the most critical issues affecting the industry in 2023 as adviser numbers staggered.
“We still have lingering issues with the perception of financial advice as a result of the Royal Commission and it will take time to turn that around,” Anderson admitted.
“I think that’s just a matter of a few more years and we’ll start to see a difference, but there’s a lot of work that can be done in articulating the value of advice, not only for clients, but for those who are interested in becoming advisers in the future.”
And once again we are in limbo for two years. Not sure about everyone else but my back and knees are getting sore from always being in this position. Maybe I should get a job as a Yoga instructor. Have a great new year all.
Phil Anderson. WHAT ARE YOU SMOKIN.
Another brave vision kicking the adviser to the curb, allowing the banks back in and roboadvice will rule over all. I thought we had all the massive changes, now there’s more with the assumption this’ll fix whatever they see as the problem? Thanks AFA, you’ve given me a clear reason to vote against the merger with the FPA. And if I hear this sort of rubbish from the FPA I’ll be saving myself a grand this year. I’ll put it towards my ASIC levy or the new annual adviser registration, which I’m sure isn’t free.