The Financial Services Council (FSC) recently announced the addition of two new financial advice businesses to its membership, along with two members from the funds management sector.
Following the announcement, FSC chief executive Blake Briggs insisted that the financial services industry is at its strongest when it speaks with a unified voice on regulatory and policy issues that impact the advice sector.
However, many within the financial advice profession expressed concerns about the development, including in the comments section of ifa.
Ahead of his session at the Australian Wealth Management Summit 2024, Briggs responded that he is “happy for people to be sceptical and want to see proof of the benefits to advisers and their clients”.
“I know that there is an important piece of work to be done to demonstrate that the advice industry will benefit from the collective reforms that we’re advocating for,” he told ifa.
“The FSC will work to demonstrate that by having advice businesses appointed to our board, they’re at the very core of the FSC’s decision-making process.”
Briggs argued that expanding the membership tent would inject diverse views and expertise from different sections of the industry into the decision-making process, thereby bolstering the quality of the FSC’s work.
“We’re prepared to demonstrate that this will work out well for the advice industry because we’re confident that the kind of legislative reform that the FSC has the authority and capability to deliver will benefit advisers and their industry,” he said.
“The FSC is built on a model of multiple voices from the industry around the table, pulling their expertise and their views. The FSC has over 100 member organisations, and they don’t always agree on everything.
“We believe that having broader representation on the board and enabling advice businesses to put their industry hat on (instead of their sector-specific hat) allows us to do better work.”
The new board composition means the industry is in a stronger position to push for reform, Briggs said, referring to the government’s introduction of tranche one of its Delivering Better Financial Outcomes reform package on financial advice into Parliament.
When it was introduced, the FSC said it would implement positive changes, including streamlining fee consent requirements, enabling greater flexibility around the provision of Financial Services Guides, and tightening the ban on conflicted remuneration.
However, it had expressed concern that the drafting of the bill may not remove “costly” regulatory duplication that requires both advisers and superannuation trustees to approve advice fee deductions from super accounts.
“It’s key that these reforms get done in the term of this Parliament, and that Assistant Treasurer Stephen Jones is supported in delivering on his commitments because they do have broad industry support,” Briggs said.
“That requires our industry to work closely with the government in a unified manner so that when we go to them with any questions or concerns, we can be very clear about the changes or fine-tuning that is required so it receives broad industry support and passes through the Parliament smoothly.”
The industry is waiting for consultation to begin on tranche two reforms, which are currently subject to the drafting process.
At the summit, Briggs will outline growth opportunities in the financial services industry and the government’s intent to legislate reforms to the financial advice regulatory framework this year.
To hear more from Blake Briggs about the emerging green shoots in financial advice, come along to the Australian Wealth Management Summit 2024.
It will be held on Wednesday, 8 May at The Star, Sydney.
Click here to book your tickets and don’t miss out!
For more information, including agenda and speakers, click here.
