Government strikes right balance with timing of reforms

The Federal Government has struck the right balance between improving financial advice standards and giving the industry the necessary time to adjust, says SMSF Association CEO John Maroney.

“The Government’s announcement that it will continue implementing reforms to build trust in financial advice as a true profession is welcomed.

“But allowing the industry an extra year to complete the Financial Adviser Standards and Ethics Authority-approved exam (1 January 2022) and two additional years to meet its qualification requirements (1 January 2026) are prudent steps to limit the disruption being caused by these necessary changes. [These changes will not apply to new advisers registered after 1 January 2019.]

“The Assistant Minister for Superannuation, Financial Advice and Financial Technology, Senator Jane Hume, has demonstrated she is prepared to listen to the genuine concerns of the industry over the timing of the reforms without undermining their integrity.

“The Association has no doubt that the Government’s ongoing reform to financial advice will raise the industry’s educational, training and ethical standards, and commend it for doing so.

“But it’s critical to realise the industry needs time to adjust, and that’s exactly what the Government has done with this announcement.”

Maroney says the Association will continue working closely with the Government to ensure the advice industry meets the highest professional standards that all consumers have the right to expect.