Quality of Advice submissions deadline looms

5 September 2022

Submissions on the Quality of Advice review are due in less than three weeks as the inquiry continues its work by looking at whether the insurance exemption to the ban on conflicted remuneration remains justified.

Treasury has provided a template for submission responses, which includes 14 specific questions and the opportunity to provide other comments and feedback.

“For this consultation, we encourage you to use a template because we are asking some quite targeted questions around the implementation of these proposals and how they may work in real life for advisers and different advice businesses,” Treasury director Jordan George told a webinar last week.

Independent review Michelle Levy told the webinar that the intention is that the proposals will make it easier for consumers to access financial advice that meets their needs from a range of different providers.

“That will mean advisers, traditional financial advisers, as well as financial institutions. It’s about helping all of them to have more helpful conversations with their customers and clients,” she said.

The recommendations include expanding the reach of personal advice, ending the regulation of general advice as a financial service and replacing the best interests obligation with a good advice duty.

The Insurance Council of Australia and National Insurance Brokers Association (NIBA) say they are reviewing the consultation papers’ proposals. The interim document has not addressed the issue of whether the insurance exemption to the ban on conflicted remuneration should remain, with more work continuing in that area.

“We look forward to continuing our engagement with Treasury and the independent reviewer Michelle Levy and will be participating in roundtable discussions,” NIBA CEO Phil Kewin said.