Quality of Advice Review – what happens next?

AFA News 11 August 2022.  At a recent conference, Michelle Levy (Allen’s partner and the Quality of Advice Reviewer), announced that the Quality of Advice Review (QAR) project was going to issue a proposals paper for consultation with the advice sector in the next couple of weeks.  This is an exciting step in the process, and we look forward to what will be contained in this proposal paper.  We are well aware of the fact that Michelle Levy and the Treasury team have been out speaking to a lot of people (including the AFA on multiple occasions), and we have the sense that they are very well briefed on the challenges that financial advisers currently face and the complications that current and potential clients have in accessing affordable financial advice.

We are looking forward to the release of this proposal paper and we will communicate with members shortly after it is released and seek feedback from members on the proposals.  This is a time for big picture and blue-sky thinking.  We encourage you to be part of this.

We are also very excited to have Michelle Levy presenting at the AFA Conference at the RACV Royal Pines Resort on the Gold Coast on Thursday 22 September 2022.  Michelle Levy will be making a presentation, which will be followed by a panel session with the CEOs of the FPA (Sarah Abood) and the SMSF Association (John Maroney).  This will give us a great opportunity to hear from Michelle on what she has proposed and also to get insights from the heads of the other leading professional associations.  We encourage members to attend the AFA Conference and to listen to Michelle, Sarah and John.  This subject is just so critical to the future of the advice profession.

QAR proposal paper will not address Life Insurance Commissions

We are advised that the proposed paper will not address the important issues of the Life Insurance Framework and Life Insurance Commissions.  This is a critical issue that will be addressed at a later point; however, it is one where we continue to advocate for a sensible outcome where commissions are retained or potentially even increased.  There is broad support for the retention of commissions, and we are continuing to work with a range of stakeholders to ensure that this is the outcome.

Whilst the commissions issue is front and centre for risk advisers, we strongly encourage you to remain engaged in this proposal paper exercise, as this paper will confront how we reduce the cost of providing financial advice and make it more consumer-centric, which are issues that are equally important in the risk space.

For any questions on the Quality of Advice Review, please email us at policy@afa.asn.au.

Issued 11.08.2022. AFA Policy & Education Update