The Financial Services Council (FSC) plans to investigate whether FOFA has been effective in improving advice accessibility and affordability, as part of a statement of its policy priorities for the next federal Parliament.
The FSC said accessibility and affordability of advice are critical to facilitating the financial wellbeing of Australians.
"One of the objectives of the FOFA reforms was to make advice more accessible and affordable to consumers, in addition to improving the trust and confidence in financial services," the statement said.
"The question is whether FOFA has been effective in achieving this."
In the statement, the FSC reaffirmed its support for the recommendations laid out in the Financial System Inquiry (FSI).
"The FSI demonstrated that Australia's world-leading financial system is stable, secure and innovative," said FSC chief executive Sally Loane.
"The FSI 'health check' found there was room for improvement especially in respect of competition, stronger enforcement of the law and better governance."
The FSC also supports a model framework for adviser standards, which includes a new standalone independent standards body, higher entrance requirements for financial advisers, and ongoing education for financial advisers, the statement said.
Other policy goals for advice laid out in the statement included aligning remuneration with consumer interests in life insurance advice and enhancing consumer understanding through shorter and more effective statements of advice.
Adrian Flores is a deputy editor at Momentum Media, focusing mainly on banking, wealth management and financial services. He has also written for Public Accountant, Accountants Daily and The CEO Magazine.
You can contact him on [email protected].
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