Quality of Advice terms of reference highlights ‘growing maturity’ of industry

Released earlier this month, the terms of reference for the Quality of Advice review (QAR) will consider the use of regulatory technology and digital advice and will “pay particular attention to how technology and digital advice might enable mass market adoption of low-cost advice”.

Speaking to ifa, Craig Keary, Asia-Pacific chief executive of digital advice provider Ignition, said it is a “very positive step” for the advice industry in regards to digital adoption.

“It reflects the growing maturity of the financial advice industry the government and regulators, in acknowledging the important role that technology will play in making financial advice more accessible to more Australians, in a cost-effective manner,” Mr Keary said.

“As the terms of reference (TOR) state, using technology in advice will be particularly attractive to younger Australians, but it is also the case that the adoption of technology has accelerated during the COVID period amongst all age groups.

“Older Australians are now much more comfortable using technology and apps to access a variety of services, and financial advice will be part of this trend.”

Reaction to news that Michelle Levy of law firm Allens has been appointed reviewer has been mixed by industry, however groups including the FPA and wealth giant AMP welcomed the news.

The 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.