Following last Friday’s announcement, AMP issued its own statement on Tuesday (15 March) calling the review “an important opportunity to rethink regulations relating to financial advice and implement positive change, which puts the consumer at the centre”.
“While many of the changes to the industry in recent years have been beneficial for consumers, the increasingly complicated and regulated advice process has increased the cost for those receiving advice, putting it out of reach for many,” AMP’s director of advice, Matt Lawler, said.
“For those delivering advice, including financial advisers and AFSLs, there are increased costs that have been absorbed as much as possible, but this also challenges the economic viability of providing advice.
“Importantly, the sector needs to come together and agree on a package of changes that will be supported by all to make a real difference. While as an industry we would like to see change occur as soon as possible, the due date of December 2022 indicates there is a genuine desire to make substantial improvements, and to take the time to get this right.”
The Morrison government’s announcement last week received mixed response from industry stakeholders, including the Association of Independently Owned Financial Professionals (AIOFP) executive director Peter Johnston who questioned Ms Levy’s appointment in an open letter sent to financial services minister Jane Hume.
“With Ms Levy reporting by December it is obviously post the federal election, which is far from ideal with the advisers holding your government accountable for its past handling of our industry,” the letter read.
“Your government’s actions and consequences have been well known over the past 5 years, surely Ms Levy is quite aware of the general circumstances and can provide an interim report before the election for your government to be judged on?
The Quality of Advice review will invite submissions from the public and consult with stakeholders, including consumers, industry, and regulators.
A report will be provided to the government by 16 December this year.
Love the irony by AMP. Seems like the fox complaining that the new fence around the henhouse makes it too hard for him to get in.
The Federal Govt is just kicking the can down the road! Unless there is someone with financial advice experience involved we will continue to have SOAs that are worthless to the clients because they are focused on the legal requirements, not the clear, concise provision of meaningful advice.
How about a review into the quality of trustee and guardianship services (see 4 Corners, last night).
Oh, the irony of this statement from AMP is just delicious.
Totally agree! Fancy AMP having the temerity to pass comment on this process after being at the center of causing most of the issues relating to unconscionable financial advice! The reason FASEA exists is because AMP (and other Institutions) failed to provide minimum standards of advice that were acceptable to the most basic principles of Common Law….and common decency.
If anyone was hoping for some positive changes before the election, those hopes have been dashed now. This announcement serves 2 purposes. 1. Kick the can down the road to avoid making any concrete promises prior to the election; and 2. Ensure any future changes are heavily in favour of Levy’s customers and Hume’s past (and likely future) employers (ie. the big institutions). A quick read of the terms of reference make it clear this is the aim. Hume and the coalition are not our friends. That is clear now.