The Financial Services Council (FSC) has expressed its support for the government’s amendments to the Delivering Better Financial Outcomes Bill, specifically the removal of the s99FA(1)(a) and (b) provisions in tranche 1.
Stephen Jones, assistant treasurer and minister for financial services, announced the passage of the first tranche of legislation under the Treasury Laws Amendment (Delivering Better Financial Outcomes and Other Measures) Bill 2024.
This legislative move aims to provide Australians with quality and affordable financial advice. “Quality financial advice and information can support Australians to earn more and keep more of what they earn,” Jones stated.
The new legislation addresses key pain-points in financial advice delivery, including the simplification of fee documentation, flexibility in providing financial services guides, and enhanced transparency and consumer protections for personal insurance advice.
“The legislation clarifies that Australians can use their superannuation accounts to pay for personal financial advice about their superannuation from an independent financial adviser,” Jones said.
“The government’s amendments will provide superannuation trustees greater legal certainty when deducting advice fees on behalf of superannuation consumers and will reduce the regulatory impact on financial advisers and advice businesses,” FSC CEO Blake Briggs (pictured above) said.
Briggs stressed the clarity provided by the amendments.
“The amendments and supporting explanatory memorandum make it clear that trustees’ current risk-based approaches to assessing advice fee deductions remain appropriate,” he said.
The FSC boss also acknowledged the collaborative efforts of the assistant treasurer.
“The assistant treasurer has continued to consult with industry and the FSC recognises the collaborative approach he has taken to work towards the common goal of making financial advice more affordable and accessible for consumers,” Briggs said.
FSC, which recently announced the appointment of four new directors, anticipates the passage of the amended Bill through Parliament, viewing it as a significant step toward broader financial reforms.
“FSC supports the amended bill passing the Parliament, which will serve as an initial down payment before the next tranche of reforms that will expand access to lower cost financial advice for millions of Australians,” Briggs said.
The first tranche of reforms is designed to maintain consumer protections and improve access to financial advice for Australians nearing retirement.
Looking ahead, the government plans to develop further reforms, including changes to statements of advice, modernisation of the best interests duty, and increased provision of advice by financial institutions.
“The government will ensure these reforms provide access to safe, affordable, and quality financial advice to deliver better outcomes for the millions of Australians seeking financial advice and information,” Jones said.
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