‘Let’s create change’: Senior adviser tips industry to self-regulate in the future

A local senior financial adviser has predicted that the heavy regulation on the advice sector in recent years and the upcoming QAR will see the industry “self-regulate more” in the future.

Speaking on a recent episode of the ifa Show podcast, Nathan Fradley, senior financial adviser at Tribeca Financial and director at Ethos Australia, discussed his thoughts on what the sector looks like both in the short and long term, particularly after QAR reviewer Michelle Levy conceded that “changes need to be substantial” in the recently released proposal paper.

In the paper, Ms Levy 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.

“Look at what we can do within our capacity. We want to bring more people into the industry. Let's create a positive environment. Let's create change,” Mr Fradley said.

“Let's start communicating the amazing things we're doing, because if our documents aren't taking us 20 hours to do, they're now taking us 10, we've got 10 hours back to spend with our clients to spend on promoting ourselves to the community and doing a better job. And that's really what I'm hoping this will come through.”

He added that self-regulation will be “really important” moving forward.

“I think the more we take that on ourselves, the more we become a profession, the more professional we become, the better we'll stand in the community,” Mr Fradley said.

“That's really what I'm looking for.”

Ms Levy's proposal paper was widely praised by industry stakeholders, with SMSF Association CEO, John Maroney, calling it “a breath of fresh air”.

“Where the proposal paper suggests removing the requirement for statements of advice (SOAs) to allow the profession to provide financial advice in a way that suits their customers, it concurs with the association's recommendations to the review that certain types of advice should be able to be provided in a simplified form,” Mr Maroney said.

“We have long argued for the need to recognise the professionalism of the sector, cut excessive red tape, and put the consumer front and centre in the advice equation.”

Speaking to ifa, Ms Levy said she is keen to hear feedback from stakeholders and whether her proposals could help to solve issues in the advice sector.

“So, I encourage people to think about it with an open mind to take and to be prepared to take responsibility,” she said.

“Are you doing the right thing for your customer or your client? If so, have some confidence in what you're doing and the law should support that.”

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

Listen to the full ifa Show podcast with Mr Fradley 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.