Royal Commission could lead to advice becoming a “true profession”: SMSFA

Implementing the reforms called for in the Hayne Royal Commission would ensure that financial advice becomes a profession, says the SMSF Association.

SMSF Association CEO John Maroney said the reforms set out in the final report of the Royal Commission should provide the groundwork for a “more professional and trusted financial advice sector”.

“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,” he said.

“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.”

“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.”

The SMSF Association plans to “carefully scrutinise” the implementation of the Royal Commission’s recommendations, to ensure the policy intent is achieved without “excessive costs or disruption to the many advisers who deliver conflict-free and high-quality advice to their clients”.

The 2019 SMSF Association National Conference, being held later in February, includes a session titled: What does the Royal Commission mean for financial services in Australia? Speakers for the session are Jeremy Cooper, Chairman of Retirement Income with Challenger and formerly Chair of the Super System Review, former MP Bernie Ripoll and James Kirby, Wealth Editor with The Australian.

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