'One layer on top of the other layer': Heavy reform not allowing advisers to 'get the job done'

On the latest episode of the ifa Show podcast, the Association of Financial Advisers (AFA) CEO Phil Anderson said it doesn't surprise him that many of the QAR submissions issued to Treasury have recommended the regulatory burden placed on planners be reviewed.

"When you think about it, we've had such a period of vigorous, almost constant regulatory reform that is just built over the top of each other," Mr Anderson said.

"So we've had the FOFA reforms, we've had the LIF reforms, we've had professional standards. We've had all the recommendations out of the Royal Commission. On top of that, you've had DDO and a range of other reforms. It's all just one layer on top of the other layer."

Mr Anderson added that he believed there was a "level of scepticism" on the financial services industry and low minimum education standards — at the time of the Ripoll inquiry in 2009.

"All of those things have changed, and yet what we've had at the same time is more bureaucracy added over the top, rather than the capacity to recognise the professional judgement of advisers and allow them just to get on and get the job done," he explained.

"So it is very appropriate that we're looking at these significant layers of bureaucracy and complexity and say: 'The time has come to recognise that it's a profession. We don't want to wrap people up in string, make things incredibly complex. Let's just allow them to get on, and in a professional way provide quality advice to clients.'"

In its own QAR submission, the AFA called for regulatory obligations for the provision of financial advice to be “proportionate” to the level of complexity and risk of client detriment and that a three-year relief period be put in place for client consent forms “to allow for a standardised industry-wide system solution for the collection and transmission of these forms to be developed”.

As previously noted, the AFA recommended the best interests, duty-safe harbour be removed and that existing issues with FDS compliance be addressed.

On the same episode of the podcast, Mr Anderson also said he expects that the Albanese government will make good on its promise to address education standards in the financial advice sector.

Listen to the full episode with Mr Anderson here.

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.