Royal commission ‘must not derail reforms already in train’

4 December 2017

The royal commission announced by the Federal Government last week will take place before many advice sector reforms have taken full effect, the Financial Planning Association says.

“From our perspective, we have been put under the microscope and there have been recommendations for change that are being implemented,” CEO Dante De Gori told insuranceNEWS.com.au.

“We would be very disappointed if that was in any way impeded or derailed, because that momentum needs to continue.”

Mr De Gori says the industry has faced a range of legislative and regulatory reforms, including the Life Insurance Framework and requirements for higher education standards.

“We would probably prefer to say, ‘Let’s get these implemented and rolled out and then let’s review it and see what other adjustments need to be made,’ ” he said.

“But this royal commission potentially has the opportunity to tackle and scrutinise other areas that haven’t had the same scrutiny as financial planning.”

The Association of Superannuation Funds of Australia (ASFA) says the superannuation sector has also undergone numerous inquiries, is closely supervised and does not need further examination.

“A plethora of never-ending inquiries, reviews and regulation is at odds with maintaining a system that is serving Australians tremendously well,” it said.

ASFA says Australia has one of the best-rated retirement systems worldwide, behind only the Netherlands and Denmark for sustainability, adequacy and integrity, with an increasing number of retirees having significant private income above the age pension.

“Superannuation fund members have access to redress in regard to any complaints against a fund, at no cost to the fund member,” it says.