The Federal Government has accepted 14 of the 22 recommendations made by the Quality of Advice Review (QAR). The Government is expected to release its full response to the review later today.
Stephen Jones (pictured above), the Minster for Financial Services has told ABC Radio that his government’s response to the review is “cautious” and focuses “particularly” on the needs of Australians approaching retirement.
According to the ABC, the government has accepted recommended regulatory changes around advice in the superannuation sector but not for insurers and banks.
On Treasury’s website, an overview of the government’s response to the review is already published. “Certain exemptions to the ban on conflicted remuneration will be simplified and some removed,” says the website.
The overview says this includes “clarifying that monetary or non-monetary benefits given by a client are not conflicted remuneration along with the removal of consequential exceptions.”
In a media release, the Council of Australian Life Insurers (CALI) welcomed the Government’s initial response to the QAR report’s recommendations.
“This announcement is a good start but more needs to be done to help solve the unmet financial advice need for working Australians, not just those people approaching retirement,” said CALI CEO Christine Cupitt. “We must address the growing problem of underinsurance that is leaving people unprotected when times get tough,” she said.
Levy’s report and recommendations were part of the government’s review to improve the accessibility and affordability of quality financial advice.
Her review rejected calls from some consumer groups to have broker commissions banned. Levy also said the way insurance brokers give advice will not change “dramatically.”
