ASIC confirms talks with Treasury on QOA Review
The Australian Securities and Investments Commission (ASIC) has confirmed it has been ongoing talks with regards to Michelle Levy’s Quality of Advice Review, including with Treasury as it ‘stress-tests’ the final report.
Speaking at the Association of Superannuation Funds Australia (ASFA) Conference in Brisbane, ASIC Commissioner Danielle Press shared the corporate regulator’s perspective on Levy’s recommendations.
“Our view, and my view, is when we make changes to this part of the system, we need to make sure they are demonstrably better than where we are today,” she told the audience.
“Michelle and I have had a number of different conversations and reasonable minds, on these things, can differ.
“I think that’s where the Government is at – how do you take the reasonable minds that are differing and come down to an answer that is going to make the system demonstrably better?”
As the Government planned to stress-test the recommendations and undertake further consultations, ASIC awaited further details on how the recommendations could be implemented into law and what its role could look like in the new system, Press stated.
“We are talking to Treasury, we are talking to Government, as you would expect a regulator would do. We’re talking to industry as well,” she agreed.
Press also voiced her concerns around consumer protection and the importance of balancing it with access to advice and the quality of that advice.
“Bad advice is actually worse than no advice and that’s well and truly acknowledged in the report,” she said.
In all this, she believed super funds had a really important role to play in this space as “trusted partners” for their members.
“There’s a lot that you can do today under the current law, actually.
“I’d encourage funds to just get on with some of this stuff, regardless of where this ultimately lands, because you’ll be doing it anyway.”
AUTHOR
Rhea Nath
Recommended for you
The month of April enjoyed four back-to-back weeks of growth in financial adviser numbers, with this past week seeing a net rise of five.
ASIC has permanently banned a former Perth adviser after he made “materially misleading” statements to induce investors.
The Financial Services and Credit Panel has made a written order to a relevant provider after it gave advice regarding non-concessional contributions.
With the election taking place on Saturday (3 May), Adviser Ratings examines how the two major parties could shape the advice industry in the future.
