The Australian Banking Association (ABA) welcomes the Albanese Government’s significant financial advice reform package announced today by Assistant Treasurer Stephen Jones.
“In recent years, too many Australians seeking simple financial advice have not been able to receive it in a cost-effective manner,” said ABA CEO Anna Bligh.
“While previous reforms were well-intentioned, the result has been that simple financial advice has been put out of reach for most Australians, millions of whom are at or approaching retirement age.
“This gap has meant that many Australians are seeking financial advice on their own in completely unregulated channels, often through the internet and social media platforms. Sadly, Scamwatch data shows 60% of reported scam losses are from investment scams,” said Ms Bligh.
These reforms will allow for Australians to speak to qualified advisers in financial institutions and receive simple advice, with strong safeguards in place.
The ABA is pleased to see the concessional treatment for personal advice by banks on defined basic banking and insurance products will be retained.
If more comprehensive financial advice is required, clients will still need to be served by a professional financial adviser under the current standards.
These reforms are expected to be dealt with by the Parliament in 2024.
The ABA welcomes initiatives that will ensure Australians will be able to receive simple advice that is high quality, helpful, and safe.
