Daniel Shrimski
Vanguard Australia has welcomed draft legislation released on Friday by the Federal Government as an important next step in supporting Australians to achieve better financial outcomes through accessible, affordable financial advice and guidance.
Vanguard Investments Australia Managing Director Daniel Shrimski said: “We look forward to more Australians having the ability to access financial advice, support and guidance, and develop a clear plan – something that is critical to improving retirement confidence and helping Australians achieve financial freedom.”
Vanguard’s research has found that some 40% of Australians do not have a clear plan for retirement. Additionally, the costs of providing advice, often inflated by red tape and inefficiencies, continue to pose a significant barrier for everyday Australians.
“That’s why measures to reduce the administrative burden for advisers through streamlining statements of advice is great news,” Mr Shrimski said.
“We look forward to seeing further changes that support advisers in helping Australians with their financial needs.
“Vanguard proudly serves about 70% of all financial advisers in Australia and has long been a strong proponent for the value they can deliver to consumers.”
Mr Shrimski said advisers were eager for further reform to help them better serve clients.
Financial advisers can provide substantial financial and emotional benefits, including by serving as behavioural coaches, but many people are priced out to their detriment.
“That’s why we continue to build out Vanguard’s Adviser portal, which will allow advisers to invest their clients’ wealth in a low-cost, efficient and whole-of-wealth solution to help bridge Australia’s advice gap,” Mr Shrimski said.
Some Australians may not need comprehensive advice, Mr Shrimski added, but lack affordable options for simple advice and guidance.
“We also welcome proposed changes in the draft legislation to allow super funds to use ‘nudges’ to support members with important decisions about their retirement savings,” Mr Shrimski said.
“There is a need for a full spectrum of financial advice, support and guidance, based on consumer preferences, needs and circumstances.
“Today we are one step closer to delivering on this need for all Australians.”
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