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ISN lauds FOFA as a 'win-win'

Financial advice will cost consumers half as much post-FOFA as Australians flock to scaled advice, according to Rice Warner research commissioned by the Industry Super Network (ISN).

According to the research, by 2026-27 twice as many consumers will be receiving advice at half the cost compared to a non-reform scenario.

ISN chief executive David Whiteley lauded the Future of Financial Reforms as a "win-win" for advisers and consumers.

The modeling estimated that by 2026 there will be 1.88 million pieces of advice provided per year, compared to 893,000 pieces under a no-reform scenario.

The reforms will also cut the price of financial advice to consumers in half, from $2,046 without the reforms to $1,163, and boost national savings by $144 billion, the report found.

The main driver of those changes will be a large increase in the take-up of scaled advice, Rice Warner stated.

Consumers would also benefit from a shift from commission-based charging to fee-for-service, which is cheaper for consumers over the long term, Rice Warner stated.