The Future of Financial Advice Reforms: Will They Achieve Their Long Term Objectives?

22 Competition & Consumer Law Journal 197-217, (2015)

21 Pages Posted: 26 Oct 2016

See all articles by Gill North

Gill North

Deakin University, Geelong, Australia - Deakin Law School

Date Written: 2015

Abstract

The Australian population is ageing and retirement services are becoming an increasingly critical part of the Australian economy. Hence the quality of financial advice, particularly in relation to retirement matters, has been an important area of policy focus over the last five years. Reforms to the regulatory frameworks governing the provision of financial advice were enacted in 2012. The Coalition Government made some amendments in July 2014 by regulation, but these changes were disallowed by the Senate in November 2014. This article argues that there is a significant risk that the Future of Financial Advice legislation will lead to a more concentrated financial advice industry, with limited consumer access to impartial quality advice. It suggests that further reforms are required. It seeks changes to the definition of “general advice” in the Corporations Act 2001 (Cth). It also calls for innovative policies and models to promote greater competition and diversity across the financial advice industry and ensure the emerging profession remains consumer centric, innovative and efficient.

Keywords: Financial Advice Regulation, Financial Advice Reform

Suggested Citation

North, Gill, The Future of Financial Advice Reforms: Will They Achieve Their Long Term Objectives? (2015). 22 Competition & Consumer Law Journal 197-217, (2015). Available at SSRN: https://ssrn.com/abstract=2848667

Gill North (Contact Author)

Deakin University, Geelong, Australia - Deakin Law School ( email )

221 Burwood Highway
Burwood
Burwood, Victoria 3125, Victoria 3125
Australia

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