Amends the Corporations Act 2001 to: introduce additional requirements in relation to the provision of personal advice to a retail client by a financial advisor; and make consequential amendments.
This Bill aims to streamline the engagement process between a financial adviser and their client and is informed by the 2022 Quality of Advice Review, specifically ‘Recommendation 9 – Statement of Advice’ and the ‘Good Advice Duty’.
The bill should be supported because it enhances transparency between financial advisers and clients by requiring a clear Letter of Engagement. This fosters trust and ensures both parties are aligned on the scope of advice. The simplified Record of Advice (ROA) reduces complexity and administrative burden, potentially lowering costs for consumers and making financial advice more accessible [Judgment]. By building on the 'Good Advice Duty', the bill ensures advice is directly relevant to a client's personal circumstances, promoting well-being through tailored financial guidance.
The bill should be opposed because while it aims to simplify the advice process, it might inadvertently lower the comprehensiveness of financial documentation. The removal of the Statement of Advice (SOA) could lead to less detailed records, potentially reducing the quality of advice or oversight [Judgment]. Additionally, the standardization might not adequately account for the diverse needs of clients, potentially leading to advice that is too generic.
2024-11-04
Not Proceeding
VAN MANEN, Bert, MP
Unspecified
Consumer Protection, Financial Regulation