FSC white paper on financial advice

AFA News 21 October 2021. On Tuesday 12 October 2021, the FSC released their white paper on Financial Advice, which included over 30 recommendations on how to fix financial advice.  This is the third paper released by the FSC in this process, and the AFA have provided feedback with respect to their earlier papers including the Green Paper that was released earlier this year.

As part of the release of this paper, they have also published a report by KPMG on the excessive cost of providing financial advice and the opportunity to reduce this cost with sensible reforms.  You can access this report and an infographic further down in the link to the white paper.

We support a number of the FSC’s recommendations, including the removal of the Best Interests Duty Safe Harbour, the conversion of Statements of Advice to shorter Letters of Advice and the tax-deductibility of all financial advice.

The AFA welcomes all ideas to reduce the complexity and cost of the financial advice regulatory regime, and we consider these papers from the FSC and KPMG to be a good contribution to this process and also as input into the Treasury’s Quality of Advice review next year.  The more demand for change and the greater the scale of the momentum for reform, the better for advisers and their clients.

Please click here for a copy of the FSC media release.

Issued 21.10.2021. AFA Policy & Education Update