JAWG thanks Levy, says 'it's time to fundamentally reform advice'

The Joint Associations Working Group, consisting of 13 financial services industry associations, has welcomed Michelle Levy's final Quality of Advice report - published on 8 February - celebrating, in particular, its capacity to challenge thinking and present "different ways" to address long-standing problems. 

In a statement on Thursday, JAWG said "it’s time to fundamentally reform the advice regime to ensure consumers can get the advice they want and need".

According to the working group, the QAR sets the "reform foundations" needed to ensure consumers can access the affordable and high-quality financial advice they want and need.

"We want this review to be a trigger to finding a real solution to what is a growing problem for many Australians," the group said. 

"This report includes a comprehensive suite of recommendations, which together would address many of the current problems with the financial advice regulatory regime. This would enable more good quality financial advice to be provided to more Australians."

Worth particular applause, according to JAWG, is the final report's focus on consumers’ best interests.

With this focus in mind, the group applauded the report's recommendations regarding non-relevant providers. 

"In order to meet the advice needs of Australian consumers, we agree it’s time to think differently about who can provide financial advice and how that is advice is provided, while ensuring consistent consumer protections by all advice providers," JAWG said.

The current regulatory framework, the group noted, is "a major impediment" to consumers being able to access affordable quality financial advice.

"Years of constant reform aimed at protecting consumers have resulted in a significant regulatory wall between the consumer and the opportunity to access the advice they demand," JAWG noted, adding that retaining the status quo would only increase the advice gap.

"We believe that it’s time for the regulatory regime to be fundamentally reformed to ensure the advice needs of Australians are finally met".

JAWG added that it was never going to be easy to address the problems which Minister Stephen Jones described as a “hot mess” in June 2022. 

"This report presents a framework to make those changes and to put the interests of consumers front and centre," the group said.

"We thank Michelle Levy for her broad engagement and consultation with all stakeholders, and a report which provides the catalyst for a strong reform agenda focused on the consumer," it added.

"We look forward to working collaboratively with the government and other stakeholders to deliver real reform that will ensure Australians can finally access the quality, affordable financial advice they need".