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Overhaul of Financial Advice
26 April 2010
What's new?
The Rudd Government has announced reforms to financial advice to improve trust and confidence of Australian retail investors in the financial planning sector.
The reforms, known as the Future of Financial Advice, are designed to improve the quality of financial advice provided to retail clients.
The reforms
The Future of Financial Advice reforms include:
- A ban commission and volume payments from any financial services business to financial advisers
- Advisers must have a ‘product neutral’ charging structure
- Introduction of a statutory fiduciary duty so that financial advisers must act in the best interests of their clients
- Expanding the availability of low-cost ‘simple advice’
- Strengthening ASIC’s powers to ban individuals from the financial services industry
- Removing the AFSL exemption given to accountants who provide advice in relation to self managed superannuation funds
- Review of professional standards
- Definition of the distinction between retail and wholesale clients, after consultation with stakeholders
For further information:
See the Minister's media release: here