Financial advice can play an important role for consumers: access to affordable, quality financial advice can bring significant benefits to consumers and help them to make informed decisions by providing guidance with financial planning, insurance and product recommendations.
At the request of the Commission, this information note focuses on the following significant reforms affecting the regulation of financial advice since 2007:
• Future of Financial Advice (FOFA) reforms;
• life insurance remuneration reforms;
• establishment of a Financial Advisers Register; and
• development of professional standards for financial advisers
A list of ASIC regulatory guidance and legislative instruments issued or updated since 2007 that relate to financial advice is also included in Attachment A. This Information note does not consider the overall regulation of the provision of financial information and financial advice or the reforms relevant to all financial service providers.
The reforms since 2007 have been aimed at addressing a number of barriers to quality financial advice through better aligning incentives of financial advisers with consumers, increasing transparency about financial advisers’ credentials and enhancing minimum education and training standards in the sector.