The Allens partner sat down to discuss the progress on the report, due out in December, and her opinion on the current state of the advice sector in Australia.
“I think we need to make quite significant changes to the way financial advice and the provision of advice is regulated,” she said.
“I don’t think it is a matter of just crossing a few things out. Now, is that realistic? I am hopeful that it is.”
Also on this episode, Michelle looks at some of the submissions put through industry groups, the role of regulators such as ASIC in improving the industry and her hopes for the recommendations that she’ll put forward in December.
Have a feeling that Labor will happily pass any recommendations that allow for Industry fund Vertical Integration, and will scrap any steps that actually improve the quality and costs of advice.
While it’s important to understand Ms Levy is for ‘financial product advice’ not ‘financial product advisers’, it’s probably more important to understand the context in which her recommendations will be submitted, the various Governments records of implementing reviews, the consumer perspective and the Government’s willingness to invalidate the Royal Commission. I think the final outcome will be far less ambitious. Ms Levy usually represents VI businesses and product issuers and that will be the lens through which her recommendations will be structured.
Sounds like the bulk of people will end up going for the cheaper, in-house ‘advice’ (wink wink) for the majority of product-related solutions which may or may not fall under current BID or COE. We (professional Advisers) will be here for those that want to take a step further and actually got a solution that is tailored to THEM, not to the ‘advisers’ employer. My crystal ball sees Hayne RC 2.0 coming down the track……
Michelle, Industry Funds advice is not built for full personal advice (they have admitted this as you know), so that some disclosure is required so the consumer/member is aware it can be limited, in case they need more. that includes tax, cash flow mgt and estate planning. simple stuff is fine .. it will be interesting to see the take up
Does she think that allowing vertical integration is compatible with “quality advice”?