Royal Commission lays groundwork to improve financial advice: SMSF Association

From
John Maroney

John Maroney

The final report of the Financial Services Royal Commission has detailed critical reforms that should lay the groundwork for a more professional and trusted financial advice sector, says SMSF Association CEO John Maroney.

“Justice Kenneth Hayne has identified some significant areas for reform to ensure that not only do Australians consumers get better-quality financial advice, but that the advice industry becomes a true profession.

“By making recommendations to ensure the ‘fees for no service’ scandal will not occur again, remove conflicts of interest in the financial advice industry, and ensure a credible and coherent system of professional discipline, the final report has gone a long way to placing the advice industry on a far sounder footing that will deliver better consumer outcomes.”

Maroney says the Association believes that these broad reforms will result in a more professional and trusted sector.

“The 12-month Royal Commission process and the intense media scrutiny it received, as well as the public reaction to the final report, makes it abundantly clear that Australians want to be able to unreservedly trust the financial advice they receive.

“Sound advice is crucial to the financial wellbeing of Australians, and from the perspective of the SMSF sector, it’s crucial trustees get quality advice that they can confidently use to make financial decisions about their retirement income strategies.”

Maroney says the Association will carefully scrutinise the implementation of the Royal Commission’s recommendations to ensure that any changes achieve their policy intent without creating excessive costs or disruption to the many advisers who deliver conflict-free and high-quality advice to their clients.

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