FAAA ‘ready to assist the government’ get advice reform across the line

The Financial Advice Association Australia (FAAA) is primed to continue working with the Labor government following its landslide victory on the weekend, and the advice profession will be hoping the new minister listens to the feedback on the heavy advice agenda ahead of them.

Now officially retired from politics, former financial services minister Stephen Jones has left a backlog of measures to be finalised, with the headliners being the Delivering Better Financial Outcomes (DBFO) reforms and cleaning up the Compensation Scheme of Last Resort (CSLR).

Despite strong criticism of the latest DBFO bill, calling the exposure draft a “disappointing outcome” that the association can’t support “without substantial change”, the FAAA congratulated Labor on forming government for a second term.

CEO Sarah Abood said the FAAA remained committed to collaborating on critical policy areas to improve the sustainability and accessibility of financial advice.

“We congratulate the returning government and look forward to working closely with them to deliver meaningful reforms that support professional financial advice,” Abood said.

“Australians are increasingly recognising the vital role that quality advice plays in achieving financial wellbeing. This is a time for genuine policy progress, and we are ready to assist the government in delivering it.”

Ahead of the election, the association put forward its five key policy priorities on the back of member consultation – fixing the CSLR, providing adviser access to the ATO portal, delivering effective DBFO reforms and implement a standardised fee consent form, instigate a “financial services razor-gang” to cut red tape, and supporting new entrants to the financial advice profession.

Labor has not solidly committed to any of these goals – at least not to the level the FAAA wants – and Abood has once again stressed that delivering on these priorities would cut costs, support growth and improve consumer access to advice.

“One of the clearest messages from our members is that well-meaning but overly complex regulation has made financial advice harder to access and more expensive. We need to cut unnecessary red tape and ensure that advisers can focus on delivering great outcomes for their clients,” she said.

“We continue to urge the government to fix the CSLR so that financial advisers are not unfairly burdened by the cost of product failures. A cap on the advice levy and a more equitable funding model are essential.”

Abood also called for stronger action to grow the profession, which saw some movement before the election with the education pathway draft bill.

“We must make it easier for talented individuals to join our profession. That includes offering financial support to employers of Professional Year candidates, making the exam more accessible, and ensuring flexibility in the education framework,” she said.

“We are optimistic about the opportunities ahead and confident that by working together, we can create a more sustainable, fair, and accessible financial advice system for the benefit of all Australians.”