The regulation of the advice sector has been widely debated over the last 12 months and will only ramp up with next year’s introduction of the Better Advice Bill.
However, a new report has highlighted that advised clients are also wanting improvements to communication around regulation changes.
Research firm Investment Trends’ new study – which looks at Australians’ attitudes towards financial advisers – has found that communication around regulation is one of the biggest areas of concern for clients.
The study shows that actively advised clients want to see improvements in the communication of changes to rules and regulations, as well as education around investment strategy.
“Advisers are increasingly required to play the role of educator and financial coach across a growing range of financial topics,” Investment Trends’ associate research director Kurt Mayell told ifa.
“More than ever clients are expecting content delivered to them proactively to assist them in implementing their chosen investment strategy while enabling them to keep abreast of the rapidly evolving rules and regulations that may have implications on their financial situation or investment portfolio.”
Following a number of regulatory changes introduced last month, the industry will now prepare for the introduction of the Better Advice Bill on 1 January 2022 that will see the financial services and credit panel within ASIC become the single disciplinary body for advisers.
The legislation will also see the removal of the Tax Practitioners Board (TPB) as an advice regulator and that FASEA be wound up, with its responsibilities to be given to Treasury and ASIC.
Investment Trends’ report also revealed that two in five Australians believe financial advice is out of affordable reach. An estimated 1.8 million Australians use financial advice, however this figure has fallen at a rate of 100,000 since 2020.
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