The second tranche of the package covers cutting red tape and expanding access to financial advice for all Australians.
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.
The government also continues to develop legislation to modernise the best interests duty and create a new class of adviser, it said, and these outstanding items will be consulted on and combined with the draft legislation to be released in one single package.
“Reforming the best interests duty and removing the safe harbour steps will provide advisers with confidence to deliver appropriately scaled advice.
“The new class of adviser is also vital to allowing life insurers, financial advice licensees, superannuation funds and other institutions to expand the supply of quality and affordable advice to consumers.”
The government invites feedback to ensure that the reforms deliver on their objectives and operate effectively across all parts of the financial advice industry.
Consultation will close on 2 May 2025.
Commenting on the news, Financial Services Council (FSC) chief executive, Blake Briggs, said: “We are pleased the government is maintaining momentum to deliver on its commitment to deliver advice reform.
“On the eve of the federal election, the financial services industry can view the financial advice reform package released today as indicative of the government’s continued commitment to the reform agenda following the election.
“Layers of red tape and onerous regulation has meant that financial advice now costs more than $5,000 in some cases, putting it out of reach for millions of Australians. The government’s broader financial advice reform package has the capacity to reduce the cost of providing advice by 40 per cent.”
Insignia Financial’s chief customer officer, Renee Howie, said: “Insignia Financial and its associated brands, MLC, Shadforth and Bridges, welcome the continued commitment to assist Australians as they save for retirement and the opportunity to review the draft Delivering Better Financial Outcomes legislation released today.
“The client advice record is a much-needed reform. However, reforms to best interest duty and the removal of the safe harbour steps are also necessary to facilitate more affordable advice for Australians.
“Allowing super funds to provide targeted prompts to members will drive greater engagement and lead to better outcomes for more members up to and throughout retirement.”
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