Industry group launches survey to examine cost impact on advice process

A major industry group has launched a new survey to examine the cost of advice and its impact on the process, which will then be provided to the QAR ahead of its release in December.

This week, the Financial Planning Association of Australia’s (FPA) head of policy, strategy and innovation, Ben Marshan, announced that the Joint Associations Working Group (JAWG) — made up of 12 key associations including the FPA, AFA, FSC, SIAA, TAA and CA ANZ — has engaged with global market research consultancy, CoreData Group, to conduct the survey.

Mr Marshan said the research will “break down the cost impact” on the financial advice process of each component of the law, regulations and licensing costs.

“The cost of advice is a key issue that the QAR has the opportunity to address, and our research is designed to get detailed information on what effect each piece of legislation, regulation and licensee obligation, and the like, has on the cost of providing advice to Australians,” Mr Marshan told ifa on Thursday (8 September).

“We're encouraging all licensees and practices to take part in the survey which is taking place over the course of the next week.”

Participate in the survey here.

It comes after QAR reviewer Michelle Levy confirmed that the review is on track to be released on 16 December and that she is confident of a quick turnaround.

“I am hopeful — and of course, I don’t control this — that it will be quite quick,” Ms Levy said on a recent episode of the ifa Show podcast.

“So part of the process is, as much as I can, to build as much support as I can through this process. The more support there is for it, the easier it will be for it to turn into law quickly.

“… there's a lot of momentum for change and a lot of support for getting access to advice. So with luck, fingers crossed, it won't be long.”

In a proposal paper released late last month, Ms Levy confirmed she believes changes must be made to the regulatory framework, and put forward a number of proposals, including that the financial services regime should regulate the provision of “personal advice” which should be “somewhat broader” to ensure clarity.

A number of industry groups welcomed the proposal paper, including the JAWG, the Financial Services Council (FSC) and The SMSF Association.

Ms Levy earlier hit back at the criticism of her appointment as the QAR reviewer.

Following her appointment in March, many backed the move, while others advocated that someone actively working in financial advice should be taking on the task.

However, Ms Levy said that being a lawyer and working in the regulation of financial services made her a suitable choice to assess how the regulatory framework could deliver better outcomes for consumers.

“I've lived and breathed this stuff, I suppose, since it's inception,” Ms Levy said.

“The review is a review of the regulatory framework... and I think I have a really good understanding of the industry and what I hadn't known before, I've learned because I've had so many conversations with dozens and dozens of people.”

Feedback on the QAR proposal paper is now open and closes on 23 September 2022.

Listen to the full podcast with Ms Levy episode 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.