Financial Advice in Australia: Important Issues for Further Debate
‘Financial Advice in Australia: Important Issues for Further Debate’ in Shelley Griffiths and Sheelagh McCracken (eds), Making Banking and Finance Law: A Snapshot (Ross Parsons Centre, Sydney, 2015)
13 Pages Posted: 12 Nov 2016 Last revised: 19 Jul 2017
Date Written: 2015
The author argues that finance regulation is enacted in response to particular environments and issues, and to be effective, it is vital that these surrounding circumstances are comprehensively understood. She suggests that further debate is needed on major issues to ensure the financial advice regime in Australia is structured optimally, with the best available blend of regulatory protection, competitive market variables, and government support. These major issues include, among others, vertical integration, industry competition and diversity, access to affordable quality financial advice, the appropriate framework for the provision of scaled personal financial advice, the legal and practical risks associated with the provision of online personal financial advice, and the availability of comprehensive impartial financial information. The paper notes that legal reform processes around the provision of financial advice in Australia have been ongoing for many years. Nevertheless, one is left wondering whether these reform processes will achieve their stated objectives. It will not be easy for the finance sector in Australia to smoothly transition to an industry that provides impartial quality financial advice and information, yet this is necessary to rebuild and sustain long-term public trust and confidence.
Keywords: financial advice, consumer finance law, consumer protection
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