Don’t let perfect be the enemy of good, says AFA CEO

Speaking on the most recent episode of the ifa podcast, the CEO of the Association of Financial Advisers (AFA) offered some advice for those who have been most vocal in their opposition to the Quality of Advice Review.

“The Quality of Advice Review is the only game in town at the moment. This is the only way we are going to fix the problem that we all appreciate is in financial advice,” Mr Anderson said.

“Even our minister has described it as a hot mess. This is the only reform agenda that is in play that will achieve fundamental change. Yes, we could ask to tinker at the edges, but this is our one big opportunity to make fundamental change.”

He warned advisers not to let perfect be the enemy of the good. This, he said, would only serve to delay meaningful change and cause further damage to the industry.

“I look at the things that the Quality of Advice Review has recommended and think how many advisers would be prepared to give up the repeal of fee disclosure statements because of bickering from small factions of the advice sector,” Mr Anderson said.

“It’s nonsensical that we take this approach. We’ve got to give a united strong message about the reforms that we want to see happen. If we don’t grab this opportunity, then it might be four or five years down the track when adviser numbers have fallen further before we can ask again for some fundamental change to take place.”

He also addressed criticism that a lawyer like Michelle Levy was appointed to lead the review, citing the extent she went to consult with the industry.

“It’s not uncommon that a lawyer would be appointed to do a review like this, but what I’ve been particularly impressed with is that Michelle made herself so incredibly available. She went to advice practises, she talked to them, she talked to us extensively,” Mr Anderson said.

“Of course, the point that we would make is that she has been in financial services for a significant period of time. So, this is not new to her. The complexity of the regime is not new to her, and she comes to it with a legal mindset because ultimately what has to happen is the law has to change to achieve the outcomes that we want.”

Hear more from Mr Anderson here.