Advice industry needs ‘stability and certainty’ after regulation 'tsunami'

Speaking on the latest episode of the ifa Show, Mr Jones said “stability and certainty is key” for the industry given the “unprecedented” regulatory change in recent years.

“We've had a tsunami of change. What the industry needs now is stability and certainty,” he said.

“So, whether it's in superannuation, we want to ensure that 12 per cent [superannuation guarantee levy] SGL is guaranteed and that funds are well run, well-managed, delivering great outcomes to members.

“As I've said, time and again, I think the thing that we need to get right is the advice stuff because it's broken and consumers are suffering.”

It comes after experienced financial adviser Helen Baker argued late last year that the “over-regulation” of the advice sector is impacting financial planners’ mental health and driving them out of the industry.

The number of advisers in Australia shrank below 19,000 late last year and is predicted to reach 13,000 by the end of 2023.

Mr Jones added that the current regulation is not “fit for service” and that consumers are also suffering because of the reforms.

“We need you guys focusing on the needs of consumers, not looking over your shoulder for the next wave of regulatory change that's going to be coming to from whoever's in government,” he said.

Listen to the full podcast with Mr Jones here.

Neil Griffiths

Neil is the Deputy Editor of the wealth titles, including ifa and InvestorDaily.

Neil is also the host of the ifa show podcast.