ASFA welcomes the Government’s announcement of progress on the second tranche of the Delivering Better Financial Outcomes (DBFO) reforms. These changes represent a significant step forward in providing Australians with greater access to affordable, quality financial advice – helping to secure their financial future and support a dignified retirement.
“Today’s announcement is a meaningful investment in the financial wellbeing of Australians. By creating opportunities for more people to access high-quality financial guidance, the government is building a stronger foundation for all Australians to be able to achieve dignity in retirement,” said ASFA CEO, Mary Delahunty.
This announcement builds on the recommendations of Michelle Levy’s Quality of Advice Review and extensive consultations across sector and consumer groups. Tranche 2 reforms are designed to modernise the financial advice framework, making advice more accessible, affordable and tailored to individual needs.
“ASFA was pleased to bring the sector together and work with the Government on this package. It was a true collaboration and testament to the broad commitment all ASFA members, associations and the Government has to ensuring more Australians have access to help with their retirement.”
ASFA research released earlier this year revealed that one in two Australians have never accessed advice on preparing for retirement, reinforcing the need for quality, trusted financial advice to be more accessible and affordable.
“Financial advice is a critical ingredient in helping Australians build and protect their retirement savings. These reforms will empower more Australians to plan for their financial journey with confidence, enabling them to enjoy the security and dignity they deserve in later years,” said Ms Delahunty.
ASFA welcomes the key features of Tranche 2, including:
- modernising the Best Interests Duty
- introducing a New Class of Advisers (NCA) – expanding the supply of financial advice, particularly through financial institutions
- allowing superannuation funds to provide helpful ‘nudges’ to improve member engagement at key life stages
- clarifying the rules on what advice topics can be paid for through superannuation
- limiting NCAs to charge a set, one-off fee with key consumer protections
- restricting advice to prudentially regulated products
- excluding certain high-risk products from advice, and
- enacting rigorous educational standards (equivalent to AQF 5).
These reforms will ensure consumer protections are a core pillar to expanding and increasing Australians’ access to affordable, high-quality advice.
“ASFA is pleased to see that creation of the New Class of Advisers is accompanied by strong regulations and consumer protections to ensure high standards are maintained, alongside the increased provision of high-quality financial advice,” Ms Delahunty said.
“These reforms are a clear signal of the Government’s commitment to delivering better outcomes for Australians by addressing barriers to affordable financial advice. The future for Australians’ retirement savings is brighter with a more inclusive and modernised advice framework and we look forward to seeing the legislation progress in the New Year,” concluded Ms Delahunty.
For further information, please contact:
ASFA Media team, 0451 949 300.
About ASFA
ASFA, the voice of super, has been operating since 1962 and is the peak policy, research and advocacy body for Australia’s superannuation industry. ASFA represents the APRA regulated superannuation industry with over 100 organisations as members from corporate, industry, retail and public sector funds, and service providers. We develop policy positions through collaboration with our diverse membership base and use our deep technical expertise and research capabilities to assist in advancing outcomes for Australians.
We unite the superannuation community, supporting our members with research, advocacy, education and collaboration to help Australians enjoy a dignified retirement. We promote effective practice and advocate for efficiency, sustainability and trust in our world-class retirement income system.
