FASEA Decision a Good First Step But More Required
CPA Australia welcomes the government's decision to disband FASEA. Reducing the number of bodies involved in regulating financial advice is a good first step towards reducing the regulatory burden on financial advisers, but more is required.
The affordability and accessibility of financial advice is a significant issue in Australia. The regulatory burden on financial advisers is a major contributing factor.
Practically, this decision does little to address overlapping, duplicated and sometimes conflicting regulatory requirements on financial advisers. Transferring responsibilities from FASEA to ASIC and Treasury, without wholesale regulatory reform to address this issue, is akin to kicking the can down the road.
The government must do more to address the causes of the regulatory and compliance burden on financial advisers. Until they do, we will not solve the problem of advice affordability and accessibility.
It is vital that the transfer of responsibilities from FASEA to ASIC and Treasury does not cause additional burden or disruption for financial advisers. Financial advisers are assisting a deluge of clients who need their support to manage COVID-19’s economic impacts, and this important work will continue well into 2021.