Quality of Advice review ‘important opportunity to rethink regulations’: AMP

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.

Neil Griffiths

Neil is the Deputy Editor of the wealth titles, including ifa and InvestorDaily.

Neil is also the host of the ifa show podcast.